Lancor Holdings looks undervalued: A Chugh
Investment Analyst, Ashish Chugh is of the view that Lancor Holdings is looking undervalued at this level.
Chugh told CNBC-TV18, “Lancor Holdings is a Chennai based real estate company. They have a couple of projects going on in Chennai. Beside Chennai they have small presence in Bangalore and Mumbai. They have completed some residential as well as commercial projects in Chennai, Mumbai and Bangalore. Some of the prominent ones being DBS Westminster in Chennai, they have also done a building for a Ramco Systems in Chennai and they have done a residential complex called Belvedere Court in Mumbai. They did it for a company called Modern India Ltd.”
He further added, “Currently this company has got six projects which are under execution. If you take a look at the financials of the company, for FY09 this company has achieved sales of close to 160 crore as against 25 crore, which they did for FY08, which means a six fold increase in sales. Profit after tax (PAT) has also gone up six times from 5.5 crore to about 33 crore. At the current price for FY09 the EPS for this company is 16.5, market price is close to Rs 44. So the company is traded at a price to earnings ratio of less than 3.”
“In a year which was supposed to be a difficult year for the economy in general and real estate sector in particular, this company has managed a six-fold increase in both sales and profitability which is commendable. The second thing is that unlike most other real estate companies, this company has been able to adhere to strict time schedules for implementation of the projects and it has delivered most of its projects as promised.”