BSE : 511131
CMP: 34
Target : 60 in 4 months
Kamanwala Housing Construction Limited (KHCL), a company with a 25-
year track record, based at Mumbai is into construction and
development of commercial and residential buildings.
It owns the famous Filmistan studio in partnership and has been in
news recently that it is selling the land for a whooping amount of Rs.
600 cr. Kamanwala completed a commercial project "Pinnacle Corporate
Park" at Mumbai's most developing commercial hub Bandra Kurla Complex.
Kamanwala's Savoy Residence, a residential project of 60000 sq ft. in
Santacruz West has been completed. Work at Savoy chambers, a
commercial project of 67000 sq.ft in Santacruz West is completed.
Kamanwala is constructing 5 towers residential project in Malad
West .They are developing SRA project at Mahim. Kamanwala owns 125000
sq ft of land in Oshiwara area. They are soon starting with
development of 35 acres of land in Hyderabad. Kamanwala holds huge
land in Noida and Turbhe as well.
With total land asset of more than Rs.1000 cr, market is severely
undervalued at 32 with market capital of Rs.45 cr.
Considering the zeroing of debt the company has undertaken, completion
of its various projects and its land bank, we recommend a STRONG BUY
on Kamanwala with target of 60 in 4 months.
BUY HOTEL LEELA
BSE : 511131
CMP: 38
Target: 60 in 9 months
India's fifth-biggest luxury hotel chain founded in 1957. Leela Group
is engaged in the business of luxury hotels and resorts.
Hotel Leela venture, plans to raise funds through divest as much as
14.95% stake through a fresh issue of shares to unnamed investor(s)
and besides monetize its land bank by selling it.
Debt reduction through hiving off the assets, Hotel Leela venture has
signed a pact with Travancore Enterprises to transfer its hotel
property in Kerala to a special purpose vehicle (SPV), which would be
overtaken by the latter for Rs 500 crore.
According to news, it is now exiting its upcoming Chennai venture by
selling it out at an estimated price of Rs.1000 crore.. As per
experts, there are various International players who are eyeing to buy
the property. ITC is looking forward to increase their stake in Hotel
Leela, as declared by ITC Chairman S Deveshwar on 27th January 2012.
India is one of the fastest growing tourist markets in the world
inherently rooted concept of hospitality in form of "Ätithi Devo
bhava" . At present, this Company operates seven hotels at the
locations viz. Mumbai, Bangalore, Goa, Kovalam, Udaipur,Gurgaon, New
Delhi comprising 1523 guest rooms and 90 serviced apartments.
Total income has increased by 8.50% from Rs 4,885.60 million for the
quarter ended Dec. 31, 2010 to Rs 5,300.70 million for the quarter
ended Dec 31, 2011.
Going forward company is focusing towards management contract or joint
venture agreements with property owners which will reduce the initial
expenditure towards acquisition and development of properties. It is
adding 260 rooms in Delhi property.
With an ever increasing demand in tourism business synergizing with
growth plans of Leela, and steps taken to minimize its debt, we
recommend a BUY with target of Rs.60 in 9 months
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