Binny Ltd - own property in the heart of Chennai at 1/10th the cost!


(anand) #41

I had emailed the company sec asking for the breakup of the 455 cr income shown in the Sept 2016 quarter. Below is the response I got from him.

Dear Sir

Rs.455 crore income reported for the quarter ended 30th September 2016 is from the following :

  1. Sale of 14.06 acres of land : Rs.370 crores

  2. Sale of 4 acres of land : Rs. 50 crores

  3. Sale of 3.2 acres of land : Rs. 35 crores

                    TOTAL                           Rs.455 crores

(tkkabdulla) #42

CRPS were created as company took unsecured loan from promoter before split and some part of it came to Binny ltd as normal. I mean this was not created because of an expected merger, but exist from the time of demerger - 2010. Also I believe conversion of these CRPS to 18% NCD’s is not good for public share holders. Promoter is gaining additional interest from 01-Oct-14 onwards. At the same time, Mohan Breweries (promoter company) is holding nearly 380 crore cash(zero interest) which was given to them as advance for some deals which got cancelled later. Don’t you feel these deals were planned just to move the cash from Binny to Mohan breweries at least for some period. Now whatever money received by sales of land(A part of it is already with Mohan breweries) will immediately used for clearing these CRPS.


(Bheeshma Sanghani, PhD) #43

These are the terms of the JDA between SPR and Binny Limited for the 63.91 acre parcel of land on which the North Chennai township is being built

http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/Binny_Ltd_121214.pdf


(Bheeshma Sanghani, PhD) #44

Here is another indication that the demand for the projects near/at Perambur is positive.

The company had sold 14.06 acres of its land ( situated in Purasawalkam Village, Purasawalkam-Perambur Taluk) to M/s KLP Projects Private Ltd for 370 crores in 2014. This project is financed by Edelweiss ( ECL Finance Ltd )

http://www.binnyltd.in/images/postal/Binny_PB_Notice_17_02_16.pdf

I like the fact that KLP Projects has posted the updated construction status with pictures directly on their website. You can access details about the project including the construction status at

http://www.klpprojects.com/constructions-update.html

The project seems to be doing well as they have launched their ‘C BLOCK’ consisting of 3 BHK apartments of 1600 sqft - further reaffirming the fact that larger sized apartments are doing well at Perambur.


(Bheeshma Sanghani, PhD) #46

Dear @krppijain

Before sharing your views I humbly request that you do some basic research especially when the documents are freely available. The Project that you are talking about is a JDA between Unitech + Arihant + PVP ( PVP Ventures being the land owner ). Binny Ltd is nowhere even remotely connected to this project.

All the three entities are listed companies and it would have been very easy for you to verify your claim by accessing their annual reports. I can understand if they are unlisted and need some additional research.

This is a screenshot of the PVP Ventures Annual report for your reference.

You can access the AR from http://www.bseindia.com/bseplus/AnnualReport/517556/5175560316.pdf and scroll down to page 18

Thanks and happy investing!
Bheeshma


(anand) #47

As pointed out already, that is misinformation.

This venture was on the land once owned by Binny. Was sold a while ago. There may be better links out there to prove, but this is the one I could quickly find.
http://epaper.timesofindia.com/Repository/getFiles.asp?Style=OliveXLib:LowLevelEntityToPrint_TOINEW&Type=text/html&Locale=english-skin-custom&Path=TOICH/2010/03/11&ID=Ar01600
(Search for the word PVP in the article)


(Krppi Jain) #48

sorry for wrong info… since land was belongs to binny & many people know this project by binny north town…so i confused… thnx for giving info & link


(Bheeshma Sanghani, PhD) #49

I was having a look at Residex - which is a housing price index created by the National Housing Board a wholly owned subsidiary of RBI

The data is from 2007 to March 15. The base year 2007 is 100.

Chennai trounces all cities in terms of property price appreciation and that too by a wide margin. Property prices in Chennai have grown 3.64 times from 2007 - 2015 followed by Pune at 2.51 times. The data for 2016 is yet to come in though. If the RBI data is true then Chennai is the hottest property market of the last few years.

Ref : http://nhb.org.in/data-graphs/

looking within chennai which NHB has divided into 10 zones the data paints a story that strengthens my conviction further. Perambur where the JDA with SPR is, is in Zone 3

From 2012 to 2015 - Zone 3 has displayed the highest price CAGR amongst all the other zones in Chennai clocking an impressive 16.04% over the last 3 years

I have compiled the price CAGR for all the 10 zones in Chennai and they look as follows :-

The data certainly points to the fact that Chennai prices have grown the fastest compared to any other major city in india and within Chennai property prices in Perambur & surrounding areas have grown the fastest over the last 3 years. In effect, Perambur is Indias hottest property market in the last 3 years!

I wonder why any media / research house hasnt picked this obvious story - especially since it comes from the RBI’s own files and is also freely available on the NHB website.


(anand) #50

All big new projects (North town, KLP etc) surrounding the Binny land are residential, making the locality even more dense. This bodes well for Binny’s commercial development ambitions.


(Bheeshma Sanghani, PhD) #51

Yes. However everything now depends upon whether spr will be able to execute this project. So far they haven’t attempted anything of this size. The money and approvals are in place, what remains to be seen is the ability to execute.


(anand) #52

Found this on the marketing guy’s page. Want to see action rather than talk…


(Bheeshma Sanghani, PhD) #53

Hey this is great . A bit over the top though! Hope to see some announcement in BSE regarding this


(anand) #54

Honestly, I don’t expect to see an announcement for this campaign. I’m waiting for the official launch of the residential project, along with the announcement of the real name of the project (codename city). I believe this will only happen after CMDA 's approval which SPR is still waiting for.


(Bheeshma Sanghani, PhD) #55

I couldnt find the confluentia link anywhere. Could you post it here?


(anand) #56

Here is the link https://www.linkedin.com/feed/update/urn:li:activity:6252147591266557952/

Here’s a tip for you, in case you aren’t aware. When you want to search the web, to see which links have a particular image uploaded, simply drag the image and drop it on to the google search box on the browser… or even simpler, on chrome browser you could right click the image and click on “Search Google for image”


(Bheeshma Sanghani, PhD) #57

thanks for the tip! wasnt aware


(Bheeshma Sanghani, PhD) #58

breakout! Hope its not a false one. If its tests the trend and moves upward there is a nice price pop on offer


(JatinK) #59

Very interesting company & thanks for the detailed initiation, @bheeshma.

Rating upgraded by Care-

http://www.careratings.com/upload/CompanyFiles/PR/Binny%20Limited-04-07-2017.pdf

Interesting point from the report-
The soft launch for first phase happened in October 2016 & about 370 units (out of total proposed 900 units) were offered to the market, and the entire 370 units were booked as on January 31, 2017. The JV has received Rs.20 crore as customer advances during 9MFY17.


(Bheeshma Sanghani, PhD) #60

Hi thanks for sharing the report. The jv has done better than expected. All units on offer have been sold out in the first phase. North chennai has been an overlooked market and there is a really long runaway for this project. The key is execution. I fully expect piramal capital to up their financing in the remaining phases when they come up. Not many projects in india have the locational aadvantages of the port railway and wholesale market being nearby.


(Bheeshma Sanghani, PhD) #61

The wholesale market within the project premises was always the big draw for the binny spr jv. There has been a development on that side.

They have launched a website specifically to market that concept

The link is
http://marketofindia.co.in/

Traders and small shop owners have always found it difficult to do business. They lack the marketing strength to grow their business. It is basically sowcarpet on crack.

Also wholesale markets have been largely unorganized and have grown organically. The project is an ambitious attempt to create a structure for this neglected segment. The Residential segment in India has been plagued with oversupply but small shops is where a overwhelming majority of the shopping happens. There is a tremendous demand supply gap there. Binny with 40% share of the revenue as the land owner is placed in a very attractive situation valuation wise.

The risk of translating vision into reality always remains. With the advent of RERA that risk will be largely mitigated. However the TN rera rules have yet to be notified so the risk remains. Also the political landscape in TN has changed with the passing away of their very popular CM. The present TN dispensation will hopefully create a strong set of rera rules to protect real estate consumers and by extension their survival.

One other pertinent point - their current head of sales was earlier with Panchshil. Panchshil has brought the world trade center to Pune in kharadi and has developed the entire commercial infra there. Spr has made the right move by hiring him. This indicates intent. The big indicator is obviously Piramal capitals investment. However, potential investors should be worried about the pledged shares. So that is a risk. I have outlined the reasons for the pledge in my earlier posts but please don’t take them at face value.

Disc - invested and forms a significant part of my pf. I am a concentrated investor and my pf consists of 9 cos with 3 technical bets ( maruti suzlon and tvtoday).