[Source: Puravankara group]
Puravankara Group Limited a renowned real estate leader in India, brings over 40 years of expertise, making it one of the most trusted names in the industry. Providing solutions in Luxury, Affordable Housing, and commercial office space, the company has developed 77 residential and commercial projects of 43.65 million sq ft. Specialising in South and West India, the company has a prospective developable area of 24.99 million sq ft and a land bank of 56.95 million sq ft.
The company operates through three distinct brands:
[Source: Puravankara group]
Puravankara (Luxury): New Launch PSL: Comprising high-end residential projects, 13% are under construction, and 31% are ready. In our analysis, it has 47 per cent of land assets with properties that cost between ₹ 6,000 and ₹10,000 per sq ft.
Provident (Affordable Housing): Specialized in affordable housing, this brand undertakes 11% of current and 13% of completed projects and owns 10% of the land portfolio. The cost price of these buildings is estimated at Rs. 5000/-to 6000/-per square feet.
Purva Land: This brand is aimed at plotted development and enables home buyers to make diversified investments. Purva Land is responsible for seven projects in 3 cities for approximately 5 million sq ft.
Puravankara Group Path to Strategic Growth and Funding
Puravankara has tied up with the International Finance Corporation, a member of the World Bank Group, IFC’s Emerging Asia Fund (EAF), for $76 million for affordable housing. Purva Asset Management Ltd of the company has also started ₹750 crore in an Additional Investment Fund (AIF). It will fund 6-8 mid-sized affordable housing projects and plotted developments in four years, of which investors have put in ₹200 crore.
The above strategies have seen the company’s ready stock of houses decrease to about 67% within the last two years, while construction project sales have increased by 51%. Also, the net debt has been reduced by ₹900 crore in three years, enhancing the business’s financial solidity.
Future Dimensions as the Leading Real Estate Leader
Puravankara, for instance, has a robust launch pipeline of 13 MSF targeted for FY25 with expected sales of 5 MSF — much higher than the years gone by. The company is now entering the Mumbai market again, having successfully started, and is also creating a commercial vehicle to ensure the company never lacks/loses revenue. With the vast plethora of 58 million square feet land banks, Puravankara is well poised for long-term sustainable growth.
A Potential Real Estate Segment
[Source: Hindustan Times]
India’s real estate market is expected to rise 9.6% between 2022 and 2027, $1 trillion by 2030 and 13% of the GDP by 2025. The LO has further established a growing need for housing and office/retail space, government-supportive policies, and solid overseas investment, which can positively impact Puravankara.
Investment Outlook
Due to operational solid cash flows, sound financial structures, and a low and manageable DE ratio, Puravankara is a dominant player in the Southeast Indian property segment. Supported by a powerful personnel resource and high-specified sales plans, the company has good potential for a sharp increase shortly.
