Occasionally there are companies holding significant empty plots which are marked in book at historical prices. As such they are not reflected in its profits or book value but the company can always sell or develop these land banks boosting their future earnings. In such cases it is useful to consider market value of the land while determining the valuations of stock.
Dmart’s case is different. Its land holdings are being fully utilized by building stores over it which saves rent expenditure. This reflects in better profit margins for the company. Hence its properties are already being accounted into its earnings and there is no need to separately deduct market value of its land bank from the market cap.
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