In my opinion, the greatest risk for this business is occupancy / leasing out rate of the completed offices. Their money outflow starts on the day when they make deal with landlord/ buy real estate. However, their income will start once they lease out the completed offices (after furnishing/renovation, etc.). The bigger the gape the more impact on bottom line. Considering slowdown in IT, BPO, start-ups, etc. this risk can not be ignored.
For investors – high valuation, more frequent equity dilution and diversification in the lower margin business initiatives are the real risks. Hence, we as retail investors should have enough margin of safety while investing in such company instead of carried away by seeing name of the well known investors in their shareholding !!
I normally remain cautious when there is rise in Finfluencer / youtubers advisor recommending any company and multiple articles on the company/business of the company…this is time when someone already bought at lower price and would like to offload by creating froth in company stock price.
Patience always good – wait for correction / right price and buy it !! Market always give an opportunity!!
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