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