Not a recommendation
TARC (The Anant Raj Corporation)
CMP 46
A dark horse in the red hot realty sector-
Recently demerged from Anant Raj, TARC is one of the oldest and well established real estate companies with operations primarily in Delhi NCR region. Post demerger TARC will be fully focused on developing a wide range of projects on the massive prime land bank that the company owns. The management of TARC is well established with a lot of expertise in realty and they are much more aggressive than erstwhile Anant Raj.
Promoters own *65.5%*
Prominent Shareholders-
Gov of Singapore owns *4.2%*
Ace investor *Rakesh Jhunjhunwala owns 3.39%* in the co.
The company owns more than *600 acres of prime land which is fully paid for* already including land parcels in prime areas of Hauz Khas, Bhati, Chattarpur, ALipur, Mehrauli etc in *New Delhi* which is around *375 acres*. Additionally the company has prime land in *Noida and Gurgaon* region which is around *250 acres*.
Besides this TARC had certain land parcels and miscellaneous assets which are under claim right now and could bring in additional revenue of 700 Cr in next couple of years.
Verticals in the company-
1)Residential properties including luxury residential.
2)Shopping Malls
3)Commercial properties
4)Technology Parks
5)Warehouses
6)Hotels/Services Apartments
*Key highlights of projects*
Residential:
1) A large project recently completed - TARC Maceo in Gurgaon of *15 lakh sq ft* out of which 14 lakh sq ft has already been booked. Cost of Construction was 335 Crores and total revenue expected was *675 Cr* out of which *565 Cr* worth of area has already been sold.
2) 4 ongoing luxury residential projects in prime locations mainly in Delhi. Total sq ft of ongoing projects is *30 lakh sq ft.* including *TARC Hauz Khas* in South Delhi where the selling price is approx *30000/- psf* and TARC Central West Delhi where the selling price is approx 20000/- psf. TARC Rajkori in Kapashera has selling price of approx 12500/- psf.
Commercial:
1) Total of 50 lakh sq ft of commercial space from which 40 lakh has already been completed. Upcoming 10 lakh sq ft is being developed.
2) A high end commercial project of *5 lakh sq ft* TARC Visva in South Delhi for which all approvals are received and a mall at Trilokpuri is underway which is 65% completed with total area of 1 lakh sq ft and 70000 sq ft has already been contracted to a multiplex.
3) A tech park of *5 lakh sq ft* in Greater Noida is currently under development.
Warehouses:
1) 3 warehouses totaling *15.7 lakh sq ft* in Delhi.
2) 1 warehouse of *6.5 lakh sq ft* in Manesar.
Hospitality:
1) Delivered 4 hotels and 1 service apartment space till date.
2) Upcoming projects of 8.65 lakh sq ft.
TARC with its massive land bank, well diversified portfolio, integrated approach and superior execution capabilities is all set to grow exponentially from here. With the realty sector doing quite well and expected to outperform, TARC is a must buy idea. There is a great opportunity in terms of current valuation of the stock, the high growth projections of the co. and marquee names onboard.