Realty company Omaxe posted, as expected, very good results for year ended 31-03-08. Thanks to very strong sales, especially in residential space, the consolidated revenue of the company rose by a whopping 60% at Rs.2,307.75 crore. PAT was up by an unbelievable 102.85% at Rs.494.87 crore. Obviously NPM was also very high, it rose from 16.94% in FY 07 to 21.44% in FY 08.
During the year, the company allotted 100 recurred non-convertible debentures of Rs.1 crore each, amounting to Rs.100 crore, to LIC Mutual Fund. These funds are to be utilized for its ongoing projects and some parts of it for future acquisitions.
Regarding acquisitions, the company is looking at buying some established company in the Middle East. It is scouting around for a small company, which has only one or more focused projects on hands.
It’s focus right now is to get into developing projects overseas. UAE could be one of its focussed areas as that country is on a major growth trajectory and infrastructure development is happening at a break-neck speed.
On the bourses, realty stocks have been literally hammered down and for now, investors are shunning this sector. Omaxe, fundamentally is a sound company and if you can rise above the current volatility and disenchantment for realty stocks, then you can take a long term position in the stock. Yesterday, the stock touched a new low of Rs.171, but managed to close at Rs.174. Worth a buy at these levels.
Source: sptulsian.com
