ARVSMART (ARVIND SMARTSPACES)

🏨*ARVIND SMARTSPACES*  🏤               

*CMP Rs110*
                                                                    .                      *TARGET 200+ (6 MONTHS)*🎯

✔ Established in year 2009, *Arvind Infrastructure* has set its sights on unlocking the massive land banks owned by the company in Gujarat.

✔ The company has established its presence in residential ,commercial and land development across Ahmedabad & Banglore.

✔ Till date company has  completed and handed over 6 projects measuring total developed area of 2.27 Million sqftas on 31st December, 2016 (Alcove, Megatrade, Parishkaar, Trade square, Expansia & Citadel)

✔ Currently, executing 6 projects in Ahmedabad and Bengaluru measuring 12.76 Million sq ft of
developable area.

✔ The Company is trying to create a brand in real estate similar to Godrej properties which they aim to make it into top real estate brands in the country.Also their sponsoring the GIHED event (largest property event in Gujarat) and getting awards of Luxury project of the year (Uplands) and Emerging developer of the year-Residential (although most awards r purchased  shows that they are investing a lot of money in creating a brand.

✔ The Company follows *asset light model* i.e. not blocking capital in land and hence most of the project is executed on sales proceeds - which is only possible in future if they successfully create a brand and land owners come to them for joint development like Godrej.

✔ Their current projects have revenue potential of more than 3000 Cr  thus even if we assume about 10-15% PAT margin for a real estate project than the profit potential for all of its projects in next 2-3 years is about 500 CR and today the whole company is available at 310  CR market cap.

✔ In 2014-15 the company reported PAT of Rs. 10 cr & in FY 15-16 it almost doubled to 17Cr for FY 16-17 they have already registered PAT OF 21cr. The Stock Currently trades at *14 P. E* (Which is cheapest amongst Real estate listed Peers) and even if we where to consider half of what Godrej Properties trades at Which is Currently at 61 PE the stock can Easily Double from here I.E reach *RS.200 +*

💰 Low Debt To Equity Ratio - *0.68:1*

  ✔Average cost of debt for Q3 FY 17 is *10.65%*

🌟 🌟 🌟  Recently The Promoter Group also *increased* its holding By converting Total Warrants 57,50,000 to 25,75,000/- Equity Shares at Rs. *78/-* Each and Increasing Promoter Holding From *47.37 %* to *52.12 %* Showing Confidence of Better Times ahead.

PLEASE NOTE THAT I AM NOT A SEBI REGISTERED ANALYST. PLEASE CONSULT YOUR FINANCIAL ADVISOR BEFORE INVESTING.