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
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.
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