Scribd Logo
Upload

Welcome to Scribd!

  • 40 views

    Keystone Realtors LTD Ipo Product Note

    Uploaded by

    Lakshya Moddii
    Keystone Realtors Ltd is a prominent real estate developer in Mumbai with an asset-light and scalable business model. They focus on joint development projects, requiring lower upfront capital than acquiring land. They have expertise developing projects in-house from initiation to completion. Going forward, they aim to expand in Mumbai while maintaining quality, reducing costs and achieving economies of scale. Financially, revenue grew at a 2.4% CAGR from FY20-22 while profit grew at a 206% CAGR, though debt is high compared to peers. Risks include slowdowns in demand and high debt levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Keystone Realtors LTD Ipo Product Note

    Uploaded by

    Lakshya Moddii
    40 views3 pages
    Keystone Realtors Ltd is a prominent real estate developer in Mumbai with an asset-light and scalable business model. They focus on joint development projects, requiring lower upfront capital than acquiring land. They have expertise developing projects in-house from initiation to completion. Going forward, they aim to expand in Mumbai while maintaining quality, reducing costs and achieving economies of scale. Financially, revenue grew at a 2.4% CAGR from FY20-22 while profit grew at a 206% CAGR, though debt is high compared to peers. Risks include slowdowns in demand and high debt levels.

    Original Description:

    Ipo

    Original Title

    keystone-realtors-ltd-ipo-product-note

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Keystone Realtors Ltd is a prominent real estate developer in Mumbai with an asset-light and scalable business model. They focus on joint development projects, requiring lower upfront capital than acquiring land. They have expertise developing projects in-house from initiation to completion. Going forward, they aim to expand in Mumbai while maintaining quality, reducing costs and achieving economies of scale. Financially, revenue grew at a 2.4% CAGR from FY20-22 while profit grew at a 206% CAGR, though debt is high compared to peers. Risks include slowdowns in demand and high debt levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    40 views3 pages

    Keystone Realtors LTD Ipo Product Note

    Uploaded by

    Lakshya Moddii
    Keystone Realtors Ltd is a prominent real estate developer in Mumbai with an asset-light and scalable business model. They focus on joint development projects, requiring lower upfront capital than acquiring land. They have expertise developing projects in-house from initiation to completion. Going forward, they aim to expand in Mumbai while maintaining quality, reducing costs and achieving economies of scale. Financially, revenue grew at a 2.4% CAGR from FY20-22 while profit grew at a 206% CAGR, though debt is high compared to peers. Risks include slowdowns in demand and high debt levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    IPO Product Note

    Keystone Realtors Ltd (Rustomjee) Neutral

    Issue Highlights Key Highlights


     Company Background: Keystone Realtors (Rustomjee) is one of the
    Issue Open November 14, 2022
    prominent real estate developers (in terms of absorption in number of
    Issue Close November 16, 2022 units) in the micro markets. They command a market share of 28% in
    Issue Price Rs. 514 - Rs. 541 Per Share Khar, 23% market in Juhu, 11% in Bandra East, 14% in Virar, 3% in Thane
    and 5% in Bhandup in terms of absorption (in units) from 2017-2021.
    Total Issue Size Rs. 635 Cr
    Further, as of June 30, 2022, they have 32 Completed Projects, 12
    Of which Ongoing Projects and 21 Forthcoming Projects across the Mumbai
    Fresh Issue Rs. 560 Cr Metropolitan Region (MMR) that includes a comprehensive range of
    projects under the affordable, mid and mass, aspirational, premium and
    Offer for Sale Rs. 75 Cr
    super premium categories, all under Rustomjee brand.
    Face Value Rs. 10 Per share
     Asset-light and scalable model resulting in profitability and stable
    Market Lot 27 Equity Shares financial performance: Their business model is such that it focuses on
    Issue Type Book Built Issue entering into joint development agreements and re-development
    agreements with landowners or developers or societies, which requires
    Offer Structure lower upfront capital expenditure compared to direct acquisition of land
    QIB Category 50%
    parcels. Further, they maintain low capital investment through two
    approaches like first, their business model allows them to optimize the
    Retail category 35%
    upfront capex compared to direct acquisition of land parcels. Second, they
    Non-Institutional 15% adopt a disciplined approach and abide by the ceilings of permissible
    capital commitments for each project.
    Lead Book Running Managers
     Demonstrated project execution capabilities with in-house functional
     Axis Capital Ltd. expertise: They have adopted an integrated real estate development
     Credit Suisse Securities (India) Pvt. Ltd. model, with capabilities and in-house resources to execute projects from
    its initiation to completion. So, for every stage they have developed
    Registrar To The Offer in-house competencies which is positive and helps them to deliver
     Link Intime India Pvt. Ltd. projects as per the customers demand.

     Strategies going forward: The company intends to focus on its strength


    like assets light model, customer centric approach, high end product
    design which would support them in expanding its presence in Mumbai
    city. Besides, their focus will be on maintaining quality, reducing
    development time & cost and achieving better economies of scale.

     Financial: On financial front, the company’s revenue grew by 2.4% CAGR


    while PAT grew by 206% CAGR over FY20-22. Besides, its debt/equity is at
    1.4x and is high as compared to other listed players which is not
    encouraging.
    Research Analyst
     Key Risk: 1) Slowdown in demand. 2) High debt on books as compared to
    Nirvi Ashar, MBA
    peers.
    [email protected]

    November 11, 2022


    Keystone Realtors Ltd (Rustomjee)

    Research Team

    Siddarth Bhamre Head of Research [email protected]

    Equity Research

    Ajit Mishra Technical [email protected]

    Suhanee Shome Technical [email protected]

    Riddhika Mirajkar Technical [email protected]

    Nirvi Ashar Fundamental [email protected]

    Mehul Mistry Fundamental [email protected]

    Manoj M Vayalar Derivatives [email protected]

    Gaurav Arora Derivatives [email protected]

    Commodity, Currency and Agri Research

    Sugandha Sachdeva Metals, Energy & Currency and Agri [email protected]

    Amandeep Singh Currency [email protected]

    Vipul Srivastava Metals & Energy [email protected]

    Gaurav Sharma Metals & Energy [email protected]

    Abhijeet Banerjee Agri [email protected]


    Keystone Realtors Ltd (Rustomjee)

    Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India
    (Research Analysts) Regulations, 2014 and Research Disclaimer at the following link : htps://www.religareonline.com/disclaimer

    Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014
    is/are as under:

    Statements on ownership and material conflicts of interest , compensation– Research Analyst (RA)

    [Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to
    questions under F (a) to F(j) below , are given separately]

    S. No. Statement Answer

    Tick appropriate
    Yes No
    I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of No
    Interest is given below this table]

    I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject No
    company, at the end of the month immediately preceding the date of publication of the research report or date of
    the public appearance?

    I / we or any of my/our relative, has any other material conflict of interest at the time of publication of the No
    research report or at the time of public appearance?

    I/we have received any compensation from the subject company in the past twelve months? No

    I/we have managed or co-managed public offering of securities for the subject company in the past twelve No
    months?
    I/we have received any compensation for brokerage services from the subject company in the past twelve months? No

    I/we have received any compensation for products or services other than brokerage services from the subject No
    company in the past twelve months?

    I/we have received any compensation or other benefits from the subject company or third party in connection with No
    the research report?
    I/we have served as an officer, director or employee of the subject company? No

    I/we have been engaged in market making activity for the subject company? No

    Nature of Interest ( if answer to F (a) above is Yes :


    …………………………………………………………………………………………………………………………………………………
    Name(s) with Signature(s) of RA(s).
    [Please note that only in case of multiple RAs and if the answers differ inter-se between the RAs, then RA specific answer with respect to
    questions under F (a) to F(j) above , are given below]

    Copyright in this document vests exclusively with RBL. This information should not be reproduced or redistributed or passed on directly or indirectly in any
    form to any other person or published, copied, in whole or in part, for any purpose, without prior written permission from RBL. We do not guarantee the
    integrity of any emails or attached files and are not responsible for any changes made to them by any other person.

    Disclaimer: https://www.religareonline.com/disclaimer

    IPO Product Note

    You might also like