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SSPDL Ltd.
CMP- 25.10
BSE CODE- 530821
About the company:
SSPDL, formerly the Srinivasa Shipping and Property Development Limited established in 1994, is a leading infrastructure and real estate development company in south India. SSPDL a listed entity on the Bombay Stock Exchange with its registered Office in Hyderabad. SSPDL is promoted by a renowned first-generation entrepreneur Prakash Challa.
SSPDL is primarily developing commercial (IT Parks, Shopping Malls, Hotel Projects, Service Apartments etc) and Residential properties (Gated Communities, Villas, Apartments and Serviced Plots) all over south India for more than 15 years and has been setting standards in the construction industry. Building a reputation for ethical practice and developing properties that have become landmarks. Projects that go beyond construction, to create quality lifestyles in tune with customer needs and in harmony with nature.
SSPDL is executing own projects spanning 11 million sq ft all over South India through the flagship company and SPVs. In 2005, SSPDL recognized the need for strengthening the construction contracting division, and accordingly have taken steps to execute all their projects in-house. Having achieved quality levels, SSPDL is geared up technically to take up construction contracting from third parties. Due to the huge requirement of diversified business segments, SSPDL's vision is to have separate verticals for construction contracting, infrastructure, facilities management, hospitality and logistics besides the real estate division.
Currently, SSPDL is executing construction contracts from SAIL (Vizag), NSIC (Hyderabad), The Chatterjee Group (Calcutta) and Regalia Realty (Chennai). Through prudent Financial Planning and Management, SSPDL has taken up projects with low land cost and high profitability. Most of the major projects have already been tied up in SPV with Private Equity Funds thereby de-risking the business, primarily to protect the investor's wealth.
Ongoing projects of the company:
The Retreat, Bangalore
The Ferns, Chennai
TCG IT Park, Chennai
The Retreat, Hyderabad
The Promenade, Chennai and many more
Completed Projects:
Capital Towers, Chennai
Fuller Towers Chennai
Eden Gardens, Hyderabad
Casa Challa, Chennai
Challa Mall, Chennai, etc.
Achievements/ recognition:
ISO 9001:2000 certified
Alpha City IT Park located at Navalur, Old Mahabalipuram Road (OMR), at the heart of the IT Corridor in Chennai was recently nominated for the Best Commercial Property Award by CNBC-Awaaz CRISIL Real Estate Awards 2008.
Key Highlights:
SSPDL is trading at an undervalued PE of 4.15 compared to the industry PE of 24.44
The company has given turnaround results in last two quarters with spurt in both sales and profits without much movement in the market price yet
It is trading at 0.68 times of book value
Promoter's holding stands decently at around 54.20%
On charts 20 appears to be a strong support and the stock is not much responsive to the market volatility
We recently saw the stock breaking out levels of 23 which was a peak in the year 2012 and the stock has now sustained well above those levels.
To sum SSPDL Ltd. appears to be a turn around story and a portfolio pick from real-estate sector for long term perspective.
Important Links:
moneycontrol page of sspdl
check the screener
check the charts
link to company website
Ashish Chug on SSPDL
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Happy Investing
The Multiplier
Disclaimar : The above is not a recommendation to buy or sell, but personal views & analysis of the author and it should not be treated as a research report. The contents of this website/blog are only for educational purposes. No liability is accepted for any content on this blog/website . Subject to Gurgaon (india) jurisdiction only. The author is not a research analyst and does not give investment advice, he believes his statements to be true, they always depend on the reliability of his own credible sources. It is safe to assume that we are holding SSPDL Ltd. in our portfolio and hence our point of view can be biased. Please consult your financial advisor before any investments.