Stockrabit · Analysts
Questions across 7 calls

Dhruvesh Sanghvi

Prospero Tree

Sobha Limited

Sobha Limited CC-Jun24.pdf · 2024-08-09
Congrats on the great quarter, JagadishJi and YogeshJi. So, just to understand SOBHA share versus JD share, so if we see the cash flows last year, we paid approximately 1,000 crores to JD partner, but when we see in the million square feet size, I mean it doesn’t look like there is any meaningful JD partner share. So, like will this come down materially in the future because 95% or maybe 98% of our sales are probably our own and versus the JD area. How should I read this?
So, I mean there is a meaningful JD number there as well is what you are saying. Okay. The second piece is when we see the gross debt, it has remained nearly 2,000 crores for the last five quarters and we are in a very healthy shape. So, is it like we are preparing for the so-called new cities of Mumbai and Noida and once the deal is complete, we have to pay some big numbers out there or the prepayment laws don’t allow you to pay early out of the existing debt, how does this number is to be seen?
Sobha Limited CC-Mar24.pdf · 2024-05-17
Yes. I wanted to ask about the overall rights issue, but before that I wanted to applaud you that finally the shareholders have got rewarded, but still we would like the final P&L to come in. And of course we are waiting for the margins to catch up, so thank you for the overall efforts and the direction that the company has taken under you, Jagadish. So, on the rights issue, why is it taking time? I understand that probably in the coming few weeks you will do it, but is it that the cash flow of the promoters are tied up to a certain timeline, and that is the reason for it? Or some other internal planning leads to the delay?
And one broad question, because you used the word saying that the land purchases after the rights issue will be much more or significantly higher than the Rs. 400 crores otherwise planned out of your existing cash flows. On the broader sense of things, how will we take care that we are probably mid of the cycle already, we are definitely not at the low now. The land prices have readjusted across the country, and in fact, at many places and cities, the jumps have been very significant. With such a large kitty now coming in and let's say if we think about Rs. 2,000 crores of land purchase in the next two years out of the new cash flows, how do we shield for the future problems which came similar to the past ones after 2008, '09? I mean, are there enough such opportunities that are easily monetizable, or this will be like long-dated land purchase plans again where we will not be able to monetize them for another five or 10 years?
Sobha Limited CC-Dec23.pdf · 2024-02-08
Yes. Congratulations to you, the entire team. Sir, any thoughts on why we are doing with the rights issue. Of course, it was suggestion from mul tiple investors like us, but it was the suggestion around then the price was probably INR40 0, INR500 and INR600. It would be one of the few promoters in the history who would have sold at INR500 and probably now buying at much higher rates in the rights. And that is why I just wanted to understand what is the rationale that they think and they want to put the money. If you can give us a broad indication, that is one? I mean I have a couple of questions af ter that, and I'll try to sum it up in the next one.
And a small related to this is by when we will have the context of the rights issue available? Any sense? I mean, is it going to be a couple of weeks or it will take 2, 3 months?
Sobha Limited CC-Sep23.pdf · 2023-11-07
Just I was reading some of the articles about the promoters which have come an d some of the global magazines where a broader comment was mentioned about India having a peak capacity for Sobha of approximately 1 billion to $1.5 billion. Now how should we read this when we have already 5 Indian real estate players crossing more than 20,000 crores or 25 crores or 30,000 crores leagues, I mean, I feel that we are aiming too low and why is India only a billion dollar in our in the promoters’ mind? I mean what is the assumption going while saying something like this, if you can just highlight?
And just one thing which I keep asking about margins. So, just to keep the track of things, can we say now have we hit the worst phase of the margin reported margin is over now because I think last two quarters, three quarters I've been asking and you have been indicating that yes it should we are in the near end of the worst phase of the margin profile, so is this correct and supporting question to that is that yes we understand that we hit the lowest point right now, but when do we reach to a 10% to 15% net profit margin after all cost, all taxes, is it now visible in the next four quarters or no that upper cap is still much beyond the four quarter time zone?

Oberoi Realty Limited

Oberoi Realty Limited CC-Mar24.pdf · 2024-05-15
Once we are going to see such crazy cash flows now, we are like really waiting where you press the pedal on the business development front as well. So , I just wanted to have your view and probably want to push you a little bit on that area as well. I'm sure you are looking but isn't it right time now that we are looking at a 10-year great outcome for India to probably secure 4-5 more newer locations?
The kind of goodwill that has happened in the western suburbs more so than the eastern so far in Mumbai, we are almost going to dry up in terms of land that we have in Borivali and Goregaon in the next 3 to 5 years. Considering the gestation that we typically have to plan the project correctly. So, is there nothing that we can do right now for these markets between the Borivali- Andheri range, especially when we see so many other small and midsize competitors grabbing decent sized projects on the redevelopment front or majorly redevelopment?
Oberoi Realty Limited CC-Dec23.pdf · 2024-01-23
Yes, hi. Just wanted to understand what happens after 4, 5 years because now we'll -- we are at the fag end of the exhaustion in Borivali and Goregaon and such amazing name has been created in those two areas. Are there enough decent -sized land parcels available in those areas or surrounding where we'll get to participate for another 10, 15 years in the same vicinity?
Yes sir. Thank you. And a small follow-up to that. I mean, to have our stage 2 in terms of Oberoi because, let's say, we are 6 to 8 projects at the point in time now. To really take our presales and the organization to double what we are today, I mean, when I said today in the next 2, 3 years, where we will be and doubling from there. Won't we eventually require more number of sites ongoing, and therefore, the business development has to happen very soon than later now. I mean, is this way of thinking correct? I have been asking these kind of questions probably for the last 3, 5 years, but I am just trying to validate the point.

JM Financial Limited