Here are some strengths of the company
Urbanization trend in India is fast catching up and the company could benefit from this as it is well positioned to meet the housing needs of individuals moving to urban centers, as it is one of the dominant players in its region.
Government’s objective to provide housing for all initiatives is very beneficial for the company's growth prospects.
Government’s push towards infrastructure development will aid urbanization and in turn benefit the company, as the company has already seen robust demand in 2021.
RBI’s infusion of capital into the system has helped in bringing down home loan rates and is helping in spurring of demand in the real estate market.
Penetration of banking system which has increased over the last few years has helped in home loan penetration that is boosting real estate demand
GST slab revisions and constant rationalization of rates has helped real estate developers immensely, because of increasing affordability.
RERA has helped bring more transparency into the real estate segment helping the companies to gain market share from faulty players due to strong action by the government.
Post pandemic attitude change of people and the intent to own a house as opposed to renting it has gone up.
Short term interventions like loan moratorium, loan restructuring and repo rate changes have helped the real estate industry.
Home buyers are now opting towards projects offered by branded developers, and the company is well positioned to capture it.
Consolidation of the sector and fewer players will help existing companies.
Company is operating in a capital intensive sector which might pose a significant challenge in a high interest rate environment.
Concentration in one region may lead to concerns on the demand side.
Company may not be able to fulfill its ongoing projects if the demand goes down due to external factors.
Any policy changes and withdrawal of benefits on housing by the Haryana government will adversely affect the company.
Company has incurred net losses in the past and may experience it in the future as well.
Fluctuations in land and raw material prices will affect the company’s profitability and cash flows.
Legal and uncertainties and failure of collaborations may plague the company while acquiring land parcels.
Company may fail to get approvals for certain projects which may result in losses for the company.
Significant increases in taxes , changes in labour laws etc will adversely affect the company.
Industry is dominated by branded and much bigger companies which may affect company in losing out market share.
Certain projects of the company have not received completion from relevant authorities.
Labour shortages and work stoppages due to it will lead to company not being able complete project on time escalating project costs.