While it makes sense on the points raised above, it would not be appropriate to brush off the company as not worthy of investing in. There are many kind of investors out there and clearly it is an asset certain kinds of shareholders have been holding on to, so to them it may be making some sense. Not everyone is wanting outright stock price appreciation. Many prefer the cash flow
Key reasons for holding the company
- Conservative management
- Strength of the underlying asset (it is backed by a hard asset in NKP/NH)
- ICICI multicap fund has recently taken a position
- Reasonable capital appreciation based on organic growth of rentals of a prime property
- High dividend returns for those looking at cash flow
Key concerns
- Non committal management (Doesn’t provide much clarity on restructuring plans: delisting or becoming a REIT are both being speculated). GIC is the major shareholder and it is also doing deals with Brookfield REIT in Mumbai
- No inorganic growth plans or additional property under development.
- Dividends have been stagnant for the past few years
- Some promoters selling out, however GIC is not buying further stake which is a question mark
- Debt reduction glide path and gestation period
Disc: Invested as of now. Could be wrong in the assessment and biased
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