SSPDL (530821): To be rerated.                        

Near term TP 120-125

TP in 1 year: Rs 150

Chennai based SSPDL Ltd is engaged in Real Estate development.

Equity          12.93cr

Revenue     115cr

PAT.             16.20cr

*EPS Rs        12.53*

Stock is trading@ 8xFY17EPS

*BREAKING NEWS: GLOBAL FINANCIAL SERVICES CO MCQUAIRIE FOR ITS REAL ESTATE PORTFOLIO IS ACQUIRING 51% STAKE OF SSPDL PROMOTER @ 130/SHARE* Announcement in this regard is expected as soon as in next 1-2 weeks. As per source, definitive agreement already signed
SSPDL is Debt free but promoter exiting as hit by slowdown, don't have own  funds to implement projects on hand

1) The Retreat Kerala: Has 300 acres land in Idduki District for Villa and Jungle Resort development. Value of this alone is more than its mktcap

2) SSPDL NorthWoods: 42 acre project

3) 8.11 acre in Kancheepuram District: In JV as Developer, had potential of 1.2 million sq ft

4) Lakewood OMR: JV with Godrej 12.55 lac SF

5) 317 Cr worth project in Hyderabad to develop 1155 homes for BHEL employees on 90acres

6) Had made 4.77 lac SF Alpha City IT Park. Receivables 20.66cr

Macquarie will be able to infuse enough funds to kick-start above projects with particular eye on 300acre land in Kerala

With new FOREIGN promoters in control, fortunes of SSPDL will be much brighter

Stock can be 150 in less than 1 year