Equity Watch

HB Estate Developers a great Realty story unfolding

HB Estate Developers is a 12 year young company belonging to Bhasin Group of Companies.Company was initially incorporated under the name of HB Housing & Development Corporation Limited on 20th September, 1994 with the main object of development of commercial and residential complexes. The name of the company was subsequently changed on 23rd January 1996 to HB Estate Developers Ltd.  Pursuant to a Scheme of Arrangement sanctioned by the Delhi High Court the Real Estate Division of HB Stockholdings Limited was transferred to and vested in the Company.

  The Company is primarily engaged in the development of commercial complexes and is  having land banks at Gurgaon,Mohali and NCR region.

Recently Company  has made two very important announcements:

1.HB Estate Developers Ltd has informed BSE that the Company has entered into a long term Management Agreement with Indian Hotels Company Ltd (IHCL) on July 18, 2007 for operating a five star Hotel in “Taj Portfolio of Hotels” being set up by the Company at Plot No. 1, Sector 44, Gurgaon, Haryana. IHCL shall provide technical assistance to the Company.

2.. Company is implementing a Shopping Mall -cum  multiplex and Hotel in 50/50 JV with M/S Parsvanath Developers Ltd at Mohali close to Chandigarh.

Recent Q1 results of FY08 are very encouraging and include part of the income from the shopping Mall – cum multiplex and Hotel at Mohali.

Scrip Code : 532334    Company Name : HB Estate Developers Ltd

Type UnAudited UnAudited UnAudited UnAudited UnAudited
Date Begin 01 Apr 07 01 Jan 07 01 Oct 06 01 Jul 06 01 Apr 06
Date End 30 Jun 07 31 Mar 07 31 Dec 06 30 Sep 06 30 Jun 06
Description Value(Rs. million)
Net Sales 27.68 3.73 3.69 9.17 4.51
Other Income 39.47 32.56 47.07 12.9 32.35
Total Income 67.15 36.29 50.76 22.07 36.86
Expenditure -5.09 -4.2 -2.32 -7.66 -4.94
Operating Profit 62.06 32.09 48.44 14.41 31.93
Gross Profit 62.06 32.09 48.44 14.41 31.93
Depreciation -0.69 -0.11 -0.05 -0.05 -0.05
Profit before Tax 61.37 31.99 48.39 14.36 31.88
Tax -4.23 -14.22 -0.02
Profit after Tax 57.14 17.77 48.39 14.37 31.86
Prior Period Items -0.29 0.01
Net Profit 57.14 17.48 48.4 14.36 31.86
Equity Capital 123.15 123.13 123.13 123.13 123.08
EPS 4.44 1.36 3.76 1.12 2.48
Nos. of Shares – Non Promoters 5878111 5951136 6303375 6303375
Percent of Shares – Non Promoters 45.67 46.23 48.97 48.97
Result Type Q Q Q Q Q
  Notes Notes Notes Notes Notes

 Results reproduced from BSEINDIA

Equity capital of the Co. is Rs. 12.3 crores divided into 1.23 crore shares of Rs. 10 FV. Book Value of  share is Rs. 55 as on 31st march 2007.Present Market Capitalization of the Co. stands at Rs. 62 crores ( CMP of Rs. 50).Its a debt FREE Co. and holds investments in other companies, most important of which is  547,103 shares of Jaiprakash Associates valued at Rs.45 crores and still rising. With all its assets its enterprise value on a conservative basis should be minimum Rs.350 crores.Even at MP of Rs. 60 the P/E is less than 4 whereas P/E of IHCL and Parsvnath Developers are above 20.

Share appears to be MULTIBAGGER  and BUY is recommended with 2 years HOLD to see its full potential.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information/ article


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