Real Estate (cycle) - Will pessimism give birth to multibaggers!

[Prasad_India]

This post by @bheeshma is very good for estimating RE companies.
Here is the link.

Sobha Developers - Steep discount?

Hi @WarrenJhunjhunwalaLy Interesting handle. In my opinion -when valuing developers from a quantitative point of view one must keep a few things in mind. Are the operating margins more than the cost of land in relation to revenue ? e.g if operating margins are 20% and land forms 40% of the average realization per sqft then its not a happy situation for developers What is the sellout ratio? From the total units launched what is the % sold? This indicates demand for the project , a sellou…

Hope this helps.
Prasad