Marathon Nextgen Realty Ltd has come up with solid Q1 2010 results. The company has announced its Q1 2010 results on 27th Jul 2009. The Net Sales has increased to Rs.430.87 million for the June quarter from Rs.215.1 million a year ago. The Net profit has increased to Rs.302.3 million from Rs.52.83 million a year ago.
The stock has very low liquidity, Promoters hold 89.14% of shares whereas as public holding is only 10.86% as on 30 Jun 2009. EPS for TTM is Rs.52.78 and at current market price of Rs.281.60, the P/E is only 5.33, which is a good bargain compared to other bigger Mumbai based developer HDIL.The real estate market after bottoming out is on recovery path and since the company is largely based in Mumbai the margins are also very high. The company has recently leased out over 50000 sq. ft of commercial property having a market value of approximately Rs.110/- crores.
The NAV of the company as per our calculation is Rs.480. The estimated EPS of the company is Rs.65.89 for FY2010 and Rs.76.99 for FY 2011. At P/E of 7.0, the target price is Rs.461.24 for FY 2010.