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Benchmarking Analysis of ANSALS over OMAXE.
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ANSALS VS OMAXE
Benchmarking Analysis
By-Saurabh Shukla
ANSALS VS OMAXE Ansals- Ansal Properties and Infrastructure Ltd-New
Delhi based real estate development company- Operations are concentrated in the tier 2 cities of
Northern India. As of January 2007, APIL had a land bank of 5,500
acres, spanning across the states of U.P, Rajasthan, Punjab, NCR (National capital region) and Haryana.
Currently, Ansals has about 21 residential and 10 retail projects under development.
Ansals focusing more on development of IT parks and Special Economic Zones (SEZs).
The clientele of APIL include Wipro, HDFC Bank, Cadbury India, Marks & Spencer, Grasim Industries Ltd., Nike, Sony and Shopper's Stop.
Omaxe- Omaxe Ltd. is a real estate development and construction company
It has its operations in 30 cities across 9 states in India.
Omaxe is involved in residential and commercial real estate development projects ranging from integrated townships, group housing, retail and commercial properties, hotels, and information technology and bio-tech parks.
The company commenced its operations in 1989 as a construction and contracting company.
In 2001, it diversified into the real estate development business with a focus on residential and commercial properties.
As of March 31, 2007 the company has completed eight residential projects, consisting of seven group housing and one integrated township project, and two commercial projects, including retail and office space, covering approximately 5.1 msqft (million square feet) of developed area.
Source- http://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=OMAXE-ANSAL&value=OMAXE-LTD-ANSAL-PROPERTIES
AREA OF FOCUS Ansals- Tier Two Cities Upper middle class and middle class families Corporate Malls Schools Hotels Banks IT Projects
Omaxe Tier One and Tier two cities Richer and upper middle class families New retail stores and offices Government construction projects
ANSALS VS OMAXE- PROFIT ANALYSIS
ANSALS VS OMAXE- WORKING RATIO ANALYSIS
Current Valuation
OMAXE LTD ANSAL HOUSING OMAXE/ANSALS HOUSING
P/E (TTM)33.6 4.4 771.3 %
P/BV1.4 0.4
321.2%
Dividend Yield 0.5 2.9
16.7
ANSALS- SWOT ANALYSIS
Strength- Focuses more on upper middle class and
middle class families. Huge investment in large scale projects. Decade of experience Covering all the major cities and has its
projects over there. And also making its move in other cities.
Strong brand presence specially in north India Range of business verticals such as
Integrated Townships, Condominiums, Housing, Malls, Shopping Complex, Hotels etc.
Weakness- They are not regionally diversified No geographic diversification or expansion. Intense competition and strict policies-
Opportunity- Opportunity to place expansion in tier 3 cities Expansion through schools and hotels. Opportunities in metro cities and other
developing cities Expansion of current township to increase
economies of scale.
Threats- Inflation Rising Home loan rates Dumping strategy of other competitors Fluctuating interest rates Regulatory authorities Input costs are going high
OMAXE- SWOT ANALYSIS
Strength- Huge investment and better marketing
techniques Brand positioning Tie ups wit major as well as minor real estate
agents. Leading continuous innovations Experience in handling projects and themes
of all kinds Omaxe has received International Arch of
Europe Award for Quality and Excellence Creating affordable range of houses.
Weakness Huge investment in North India only. Many projects in awaited list. Limited brand recall as compared to some other
leading international or Indian players
(Source- http://www.mbaskool.com/)
Opportunity Opportunity in investment in construction of malls. Collaboration with newly entrant international
players. Investment to be made on many plants, IT Projects
and industries. Increased emphasis is laid on the Public Private
Partnership (PPP) approach for meeting the large financing requirements
Threats Rising bank rates and house loan interest
rates. Inflation Global recession Regulatory authorities. Immense rise in
taxation policy.
ANSAL’S COMPETITORS