Query Trends : Puravankara Properties

qQuery : I have Puravankara Properties from the IPO price Rs.400/share. I had booked partial losses when the stock was down but its now at a much higher level, should I hold on or sell it? Shashank

Thebullishtrends : Puravankara Properties share price closed today at Rs.430. Puravankara Group commands more than 3 decades of construction expertise. It is having operations cover Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Colombo and the United Arab Emirates (U.A.E). It is having representatives in the United Kingdom and the United States. They have completed many residential and commercial projects covering approximately 3.53 million sq.ft of saleable area. Currently they have 14.90 million sq. ft. of developable area in both our residential and commercial projects under construction.

Puravankara is having 30 yrs of realty experinece in Bangalore market and it executed majority of realty projects in Banglore. Purvankara a leading south based residential company with 73% of it's land bank in Bangalore having sales offices in Bangalore, Chennai,Mumbai and UAE, and representative offices in US and UK.

Purvankara Properties residential segment accounts for 72 per cent of gross asset value while the commercial vertical 28 per cent. Puravankara's financials are very encouraging compared to last quarter with last year the same period sales rose from Rs.94.22 cr to Rs.141.01cr and EBIDT margins are also very good netprofit Rs.53.28 from 25.99 also doubled.

Puravankara now plans to increase its presence in emerging and more profitable segments like premium apartments, commercial offices, hotels etc. Puravankara’s revenue and net profit to increase at compounded annual growth rate of 71 per cent and 75 per cent, respectively, during FY 2007-2010 (Apr-Mar)

Having healthy financials, Promoters are having sound background in the sector and we are expecting that Purvankara Properties share price may touch Rs.500 mark in the coming days.