Background
P.E. Analytics Ltd (Ticker : PROPEQUITY) is a Data Analytics company specialized in real estate data. The Company is engaged in providing proprietary Real Estate Business Intelligence and Analytics platform on B2B business model to various users such as Developers, construction industry, Investors, Banks, Housing finance companies, Equity research firms, real estate PE funds, REIT’s, financial institutions, Mortgage Insurers, HNIs, Lenders and Investors in real estate. Due to company’s in depth research, authentic data base and years of experience, unbiased and credible data, the company has quickly transformed itself into India’s most comprehensive Business Intelligence platform for real estate in India. Our company provides authenticate real estate data, analytics and market research reports available on various formats and pricing on annual subscription basis and ad hoc reports as per requirement of users
How do they build the database ?
Our proprietary database, covers pan India footprint across 44 cities, real estate data covering more than 180 points over 13 years and over 156 months on month data base. We have coverage of over 42,000 developers, over 1,36,000 projects in India and over 97,00,000 units. While the transparency of the Real estate markets and availability of information varies greatly by cities and markets, the team at P.E. Analytics works hard to capture all relevant information possible. Accuracy in Data collection in an opaque real estate market such as India is a function of team competency and size, methodology, coverage and most importantly investment. P.E. Analytics has already made investments of the highest scale in terms of capital and resources to ensure that the quality of intelligence that reaches our clients is accurate, decisive and directional.
At the heart of our approach is our proprietary data collection and control methodology. With an average of 14 sources of data collection, constant verification and stringent quality control for every data point listed on the website, we ensure that our clients receive accurate and timely information. This matched with our approach enables us to provide substantial support to our clients, offering a critical advantage in the face of constantly changing and volatile realty markets.
Data coverage and variables include
- Supply-Demand dynamics dated from year 2008 onwards.
- Vacancy trend for organized asset class supply in city.
- Rental value trend for organized asset class supply segments classified between anchor and vanilla tenants.
- Price movement of property over the various period.
- Capital value trend for organized asset class segments.
- Highlighting of upcoming / proposed organized asset class developments across city.
- Percentage development of small, medium and large scale residential developments supply led and lots more.
- Absorption rate and inventory level.
Product Description:
1 (a) Real Estate Business Intelligence – Residential:
The Real Estate Industry in India is faced with significant challenges with respect to availability of primary and secondary market intelligence. These challenges vary from availability and consistency to sufficiency and timeliness of the information. The Company is pioneering to address these challenges and covers all the information you need to successfully operate in this increasingly significant asset class. Real Estate Business Intelligence is our online subscription based service providing analytics, data and real estate research covering the Indian real-estate Industry. By leveraging our proprietary database, our clients gain access to real time information that would otherwise take months to assemble, along with the tools to search, analyze, compare, chart, and audit at a click of a button.
Under our subscription to Real Estate Business Intelligence our clients gain access to single, multiple or nationwide coverage of 44 cities in India through an online database. The online database captures over 1,36,000 projects of over 42,000 developers and generates analysis for all verticals under the residential, commercial and retail sectors from a macro to a micro level.
This platform covers the following Data Points:
- Track over 1,36,000 projects of over 42,000 developers across 44 cities in India through a real-time search
for commercial, residential and retail sectors. - Capture and analyze supply and absorption data at every price point for every project, micro market or city.
- Establish realistic valuations with greater transparency and standardize disclosures.
- Gain access to accurate market data for objective, fact-based decision making.
- Assess developer credibility and track record.
- Mitigate risks through fact based due diligence.
- Gain knowledge on Private Equity Deals, City Demographics, Laws & Regulations, and Auctions&
Tenders. - Map, locate and analyze projects with updated photographs on Google Maps.
- View projects under various stages of development and completion and compute execution delays.
- Compute Unsold Supply in any city or micro market and view Residential Diagnostics.
- Tabulate Cumulative Residential & Commercial Supply, City and Project Specific Supply, Absorption and Price Trends, vacancy trends, rental trends, yields and total returns.
- Generate existing stock, historical and forecast of supply, list sales transactions and gain knowledge of buyer profiles for commercial intelligence.
- Our Key Beneficiaries include Real Estate Private Equity Funds, Developers, REITs, the Retail Industry, Banks & HNI’s, Institutions, and other industries related to construction and real estate who need real time primary research and data pertaining to the Real Estate industry.
1 (b) Real Estate Business Intelligence – Commercial:
PropEquity’s Commercial Platform is changing the way commercial real estate is analysed in India. Our
commercial platform is built on not only 100000+ lease and sale registration data but also enhanced
extensively by over 150 survey and data analysts spread over each city to track occupancy, vacancy,
construction status for over 6000+ ready and over 1000 under construction buildings
This platform covers the following Data Points:
- Gain access to over 100 Data points covered under each transaction,
- Benchmarking of rents payable by them vs other occupants in the same building,
- Comparison of tenants vs other occupiers in the same building,
- Details of Under Construction Projects,
- Institutional vs Strata Breakup
- Rental Analysis on Same building based on Areas,
- Sector Wise Break up of Absorption/Occupancy,
- Within sector break up between Global Captive Centres and Domestic,
- Data on expiring leases for lead generation,
- Extremely responsive Client Engagement Support experienced and appreciated by over 170 institutions across the country
- 100% Stacking of any building on request
- Historical variations in rent of the same building (Year Wise and Area Wise)
- Cutting edge analytics making slicing and dicing possible in any way,
- Over 1,00,000 Leases - with over 50,000 active leases,
- ~950 Million square feet of building wise micro data with over 50 data points for each building,
- Customized Research and On Ground Capabilities - Our team has the ability to procure all information or registration data required on a building (in over 80 % queries raised).
- Our key beneficiaries include Real Estate Private Equity Funds, Developers, REITs, the Retail Industry, Banks & HNI’s, Institutions, and other industries related to construction and real estate who need real time primary research and data pertaining to the Real Estate industry.
2. Research & Consulting:
PropEquity team carries out customized research & consulting assignments for more specific insights in micro markets that the client may require to assess for accurate decision making. We provide our clients the required market intelligence and analytics to strengthen their business strategies in residential and commercial sectors from a macro to a micro level. We deliver consulting solutions that integrate business intelligence with portfolio optimization, location base analysis and organizational strategies. At PropEquity Research and Consulting we understand that any market analysis is used to provide potential developers and investor’s assurance on their investment in a micro market within a given time frame. Hence our analysis is developed to cover all the variables that impact decisions of this nature. We serve our clients by driving innovation, researching emerging growth areas across Tier 1, Tier 2 and Tier 3 cities, and sharing best practices. We offer our clients objective advice on real estate projects ranging in scope from small, single-use properties to large-scale, mixed-use developments, and diversified multi-asset portfolios.
Our research and consulting arm works on a macro to micro analysis model where macro variables cover the Economy (GDP, Inflation, Employment rate, forecast of economic indicators etc.), Political factors, Demographics, Infrastructure and micro variables cover the micro market analysis, existing stock, historical and forecast of supply and demand, vacancy, rental and capital values, prevailing prices, project life cycle tracks including delays, absorption trends and target consumer profiling. This funnel approach ensures that the client receives a detailed overview of the micro market of choice and is enabled to make an informed decision. The verticals include Apartments, Row houses/villas, Independent Floors, Plots, office, Malls, SEZ, industrial and the retail sectors with hotel, multi-housing and other specialty reports available for
selected markets.
- Under this vertical, the company carries out customized research and consulting assignments for further insights into the micro market that client may require.
- Consulting solutions are provided with an aim to improvise client’s decision making ability by assisting in demand assessment, product assessment, portfolio optimization, location analysis, entry strategy etc.
- Clients are offered advice on real estate projects ranging in scope from small, single-use properties to large scale, mixed-use developments and diversified multi-asset portfolios.
- Range of services offered include: Investment Strategy, Demand Assessment, Development studies, Feasibility studies, Floor Plan Analysis, etc.
- Under the macro factors, the company provides analysis on Economy, Political Factors, Demographics and Infrastructure.
- For micro factors, the company provides market analysis, existing stock, vacancy, rental and capital values, prevailing prices and absorption trends.
3. Collateral Risk Management (CRM)
Three years after one of the biggest sub-prime crisis in history, investors still feel nervous about
investments in the Real estate market due to a lack of risk assessment expertise. However, even today there are opportunities that can be maximized by taking calculated risks. Our goal is to breathe some life back into the real estate markets by helping investors spot successful opportunities of investment by minimizing risk.
PropEquity has pioneered and created India’s only Collateral Risk Management (CRM) platform that will provide total solutions to mortgage lending institutions and will be core to the functioning of all
departments involved in real estate lending. The CRM product will identify and mitigate risks for the entire real estate portfolio and products on a real time basis. PropEquity’s Collateral Risk Management tool is used by India’s leading banks, financial institutions and mortgage insurers to access the most comprehensive property price information to reduce costs, streamline processes and make informed lending decisions. The fully-automated Collateral Risk Management system centralizes and streamlines complex work flows as well as the associated products, analytics and data. As a
result, CRM delivers significant cost reductions, efficiency and productivity gains, with increases in overall review quality and accountability.
Key Services Offered Under CRM:
- Retail valuation for Home loan and Loan against Property cases
- Trusted name in banking industry having presence in all major Metros.
- Specialized team of experienced engineers spread across the cities delivering reports on individual self construction cases checking for approvals and report the stage of construction completed in reasonable time.
- PE Plus application has a twelve-year data repository which helps in analyzing the catchment and finding comparable.
- Independent price audit team is tracking registration data and in continuous contacts with brokers to get the accurate price of the property.
- Technical report on individual self-construction cases to check for approvals and report the stage of
construction completed. - Online support to provide photograph and technical status of Unit under consideration to facilitate part/ full disbursements and highlighting deviations if any.
Project Monitoring & Land Loan Verification (report downloadable form CRM portal includes).
- Stage of construction and pricing.
- Delay in construction.
- Latest images etc.
- Online support to provide status of execution of project under consideration to facilitate part disbursements and monitor deviations from plan.
- Verification of Land loan cases and updating the bank on status of construction on the site.
Approved Project Financial
- End to End Management of entire APF Process.
- One stop shop for all Project Master Files.
- Online access to all Project Master Files at a click of a button.
- Detailed Technical Assessment of Approvals related to the Project.
- Significantly reduced turnaround time.
Property Search Micro Website Management
- End to end Web Site creation & Management for BANK / NBFC customers.
- Project tracking on a regular basis where the customer can view the completion status on the web for the desired projects.
- The Lead Management system for near real time lead flow.
Competition
The Data Analytics industry is characterized by fragmented and highly competitive market participants. We compete with other market players as well which are Bhugol Analytics Private Limited, Liases Foras Real Estate Rating & Research Private Limited, Propstack Services Private Limited. We are able to differentiate ourselves from local, domestic players, through our broad market reach and our ability to service large enterprise, customers across multiple geographies.
Growth Triggers
Retail Initiative (B2C Expansion Plan):
Company is presently focused on B2B segment and the revenue verticals and expenditures are fully
contributed by B2B business. Now, the company has plan to enter and penetrate the B2C segment i.e. retail segment, which is highly ignored or low penetrated segment in the real estate industry. Generally in past retails managed to source the information related to property in part and pieces either through the real estate brokers or near by local public or some websites. So, just to take this gap as an opportune and to empower the retail buyers and sellers with accurate and real time information related to desired property, our company has planned to enter the B2C segment as a new business vertical.
Company already has huge data base and can easily take leverage of the existing quality data base to cater direct customers. Company has plan to create Tech Enabled Data Platform that will help the retail real estate buyer & seller for data analytics that help in informed decision making. This platform will deliver data, information and data analytics along with the various reports related to macro and micro details of the real estate/property in desired location for the interested retail buyer and sellers.
This B2C initiative will be launched on pilot basis in two to three metro cities. This platform will include customized reports, Project Rating report that can be made jointly with rating agency or by the company, Tech Enabled Project Monitoring solution that with Unique tool with every project plotted on Google maps along with the social and physical infrastructure, ability to draw own catchment on a single road or up to 5 Km radius.
Management
Mr. Samir Jasuja is a reputed name in real estate sector, he is panelist in many real estate shows and running real estate related shows on NDTV and CNBC for many years. One good interview that I have come across
Sources
AGM Recroding , questions from 17:30 onwards
Conclusion : Very small company in data Analytics, the only peer comparison is Latent View Analytics, which is into various sectors. We have to wait and see what kind of product that they come up with for retail customers. There is clear gap in real estate sector when it comes to finding out the ongoing price, most of the time we rely on brokers.
Services Offered under Prop Edge ( PropEdge-Product and Services )
Retail Valuation – Real estate ( Land & Building)
Construction Finance Valuation - Real estate ( Land & Building)
Valuation – Plant and Machinery
Real Estate Project Monitoring & Land Loan Verification
Project Approval
Services offered under P.E Analytics ( Real Estate Business Intelligence, Yearly, Quarterly, Monthly Supply & Absorption Trends Analysis | PropEquity (P.E.) Analytics, India)
Real Estate Business Intelligence - Residential / Commercial
Collateral Risk Management
Research & Consulting
Catchment Area Analysis
Realty Indices
Few Questions I have
- Which of the above services offered are subscription based and which are job works ?
From the DRHP my understanding is services listed under P.E Analytics are subscription based (except Research and Consulting ? )
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Unit economics
What is the average cost of each subscription ?
What is the average revenue potential from each customer signed under Prop Edge ?
What is the average cost to onboard each customer ? (From the site it appears to be on boarding a new customer is a manual process ) -
Total employees 200+ (For calculation sake I am taking this number as 220, in the IP it is given as 200+)
FY 22 Revenue is 240,089,486
Revenue Per Employee is - 10,91,316FY 22 Net Profit is 9,38,52,105
Net Profit per employee is - 4,26,600Since, part of the business is subscription based is it fair to assume for each additional subscription most of the revenue will be passed on to the bottom line ?
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I know someone who works in SOBHA (Sobha is one of the customers) will try to find out what services that they are using and how much do they pay.
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I have seen references to PROPEQUITY in MOSL reports so do these equity research firms are also their customers ?
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Competitors
https://www.bhugolgis.com/
Independent I Non-broking I Real estate research, advisory & consulting company
https://www.propstack.com/We need to analyze these as well, what is their revenue model etc… , how they are growing
Pending Valuations Section
Disclosure : Most of the content is from DRHP, there is nothing much I have managed to collect, just took the relevant content so that one can understand the business in a quick glance. I am still trying to understand the business and no investments. Please contribute to the thread.
