Industry Profile: The real estate sector is among the most globally recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow 30 percent over the next decade. The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 percent to the country’s Gross Domestic Product. The real estate sector comprises four sub-sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the development of the corporate environment and the demand for office space and urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy. It is also expected that this sector will incur more non-resident Indian (NRI) investments in the short and long term. Bengaluru is expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.
India’s rank in the Global House Price Index has jumped 13* spots to reach the ninth position among 55 international markets, on the back of increasing prices in the mainstream residential sector. The Government of India has been supportive of the real estate sector. In August 2015, the Union Cabinet approved 100 Smart City Projects in India. The Government has also raised FDI limits for townships and settlements development projects to 100 percent. Real estate projects within the Special Economic Zone (SEZ) are also permitted 100 percent FDI. In Union Budget 2017-18, an allocation of Rs 23,000 crore (US$ 3.57 billion) has been made for Pradhan Mantri Awaas Yojana – Gramin, with a target of 10 million houses in rural areas by 2019. The Government has also released draft guidelines for investments by Real Estate Investment Trusts (REITs) in the non-residential segment.
Company Profile: The Company operates in the civil engineering and construction sectors. The Company operates through three segments: Project Management Consultancy (PMC), Real Estate Development, Engineering, Procurement, and Construction (EPC).
The Company operates under the PMC section with management and consultancy services for civil construction projects, including residential and commercial complexes, re-development of government colonies, education and medical institutions, infrastructure project roads, water supply systems, stormwater systems, and water storage solutions. The Real Estate Development segment focuses on residential and commercial projects, such as corporate office buildings and commercial complexes. The EPC Contracting segment covers chimneys, cooling towers, roads, border fencing, water and sewage treatment plants, and solid waste management systems. The Company provides services from concept to commissioning.
Shareholding pattern: BSE Data
Financial and Ratios : [table id=84 /]
Prospects: Housing for all schemes is significant for the Company. The development of Pragati maidan in Delhi and the Smart city project will be a big boost for the Company.
