Housing Development & Infrastructure (HDIL)

Recommendation from my friend Deepak Garg.

Housing Development & Infrastructure (HDIL)

CMP Rs1,141

1 year Target Rs. 2000

HDILis a real estate development company with significant operations in Mumbai Metropolitan Region. Its business focuses on Real Estate Development, including construction and development of residential, commercial & retail projects, slum rehabilitation and development, land development including development of infrastructure.

It is a part of Wadhawan group which has been involved in real estate development in the Mumbai Metropolitan Region for almost three decades. Its residential project consists of apartments, towers, large multi-purpose townships which are sold to individual customers. It haspresence across all key segments – residential,commercial, retail, SEZs and particularly SRS

It is seeking to develop projects in other locations including Kochi & Hyderabad. Apart from residential projects, it is also considering expanding into hotel projects, special economic zone developments, mega structures, complexes which are large scale mixed use retail, commercial and residential development.

It has a significant upside potential from GVK Slum Rehabilitation Scheme (SRS) and upcoming special

economic zones (SEZs). HDIL has development pipeline of 120mn sqft (excluding GVK SRS and SEZs). It is also developing 276 acres of slum land adjacent to Mumbai airport.

HDIL’s presence in the Mumbai property marketand expertise in SRS will help it capitalise on the strong demand in the region, which has huge land shortage.

This makes it lucrative as a long term stock.