Uniply - Bet on new mgmt. bringing scale, brand & operating efficiency + GST

(ramdhawad) #170

Seems the large SEZ project they mentioned in AR and claimed to have reached a very advance stage of negotiations, have been awarded to them. Above pic is from their site under services / civil construction section.

(ramdhawad) #171

Had a call with CS, Mr. Raghu. Clarified some of the doubts:

  • In affordable segment, gov provides all the raw material like cement, bricks, steel etc and is paid for directly by them. This makes it an asset lite and less capital intensive business.

  • Labor are sourced and employed by Uniply.

  • Payment by gov agency is in phase manner.

  • Curentky working on getting some projects in Bengaluru and Maharashtra

  • Projects in Talangana got delayed due to election but confident of achieving the 1200 cr topline targtet. It may get pushed to next financial year again due to election outcome.

To me this looks a good asset lite business model. They don’t have to commit or invest any large capex to get the business. It’s like the “heads I win, tales I don’t lose much” scenario. My only doubt being, what is stopping the real estate players to get in to this space ?

Dics - invested and is the top holding in my PF with 15% allocation.