REAL ESTATE EQUITYMARKET ANALYSIS

Presented By: Bhageshree (22) Sanket (23) Ateeq (26) Adeeb ( )

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INTRODUCTION TO REAL ESTATE SECTOR:

Real estate sector in India is witnessing significant growth. Recent dynamics of the market reflected the opportunity of creating wealth across real estate companies, as proven by recent listings of real estate companies resulting into prominent growth in public funds and private equity.

The main growth thrust is coming due to favorable demographics, increasing purchasing power, existence of customer friendly banks & housing finance companies, professionalism in the real estate sector and favourable reforms initiated by the government to attract global investors.

Further necessitated by the thrust of redevelopment of old buildings, building townships and redeveloping mill lands, one can witness plenty of opportunities in real estate sector backed by favourable tax regime. IISL has developed the CNX Realty Index to synergize these emerging opportunities along with their Index expertise creating new investment avenues for investors.

The CNX Realty Index represents about 77.08% of the free float market capitalization and 90.57% total turnover of the last six month for the period March 31, 2011 of the Real estate sector Universe respectively.

The total traded value for the last six months of all CNX Realty Index constituents is approximately 4.05% of the traded value of all stocks on the NSE. CNX Realty Index constituents represent about 1.00% of the free float market capitalization as on March 31, 2011.

Selection Criteria:

Selection of the index set is based on the following criteria: 1. Constituent should be a Real Estate Company. 2. Company's market capitalization rank in the universe should be among the top 500. 3. Companys turnover rank in the universe should be in the top 500. 4. Company should have a positive Net worth. 5. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 1month period.

Stock Investing vs. Real Estate Investing Lets compare the profitability of these investment options. Year Invested Amount 1,267,276 517,276 517,276 517,276 517,276 Stock Investment Net Value 1,370,190 2,055,323 2,812,197 3,648,327 4,572,010 4,572,010 Real Estate Investment Net Value Income Costs 1,414,042 156,000 438,250 2,146,086 168,000 59,000 2,953,109 186,000 65,000 3,842,805 210,000 71,667 4,823,658 234,000 79,083 4,823,658 954,000 713,000 Stock Market 3,336,380 4,572,010 37.04% Real Estate 4,049,380 5,777,658 42.68%

Year 1 Year 2 Year 3 Year 4 Year 5

Total Value 3,336,380 Particulars

Total Investment (Amount Invested + Costs) Total Amount Realized (net value + Income) Return

Stock investing: The stock investment would generate a return of 37.04 percent in 5 years. Over the long term the stock market provide a return close to 10 percent plus per year. In this example our assumed growth rate was 10 percent per annum, plain and simple.

Real estate investing: The real estate investment yielded a return of 42.68 percent in 5 years. You may however decide, not to rent out your property but in such case your returns may also drop considerably as the costs involved in maintaining the property will have to be borne by you as out of pocket expense. Although, we have assumed a 10 percent per annum growth in property prices, however, real estate has shown far greater appreciations in the past. Investments in property is considered a safer bet when it comes to investing as you are investing in a real asset.

Real Estate Overview

The real estate sector in India is on a growth path. The development in the real estate market encompasses growth in both commercial and residential spheres. Further, it has been estimated that there would be shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12), which provides a big investment opportunity, according to a report by the Technical Group on Estimation of Housing Shortage. The popularity of the Indian real estate sector is also highlighted by a report Emerging trends in Real Estate in Asia Pacific 2011 published by PriceWaterhouseCoopers and Urban Land Institute. The report focuses on various places where developers such as Ansal Properties and Omaxe are building commercial and residential developments. These places include Jodhpur, Agra, Punjab, Uttar Pradesh, Haryana, Madhya Pradesh, and Rajasthan among others. Indian Real Estate: Investments During 2010-11, the Indian real estate and housing sectors received US$ 1.12 billion in foreign direct investment (FDI), according to the Department of Industrial Policy and Promotion India (DIPP). Further, the industry also witnessed growth in private equity (PE) investments as well. Around 20 deals worth US$ 1.32 billion took place during January-May 2011, as compared to 22 deals worth US$ 483 million during the same period last year, according to Venture Intelligence, a research service focused on PE and mergers and acquisitions (M&A). Some of the major deals that were undertaken during the first five month of the current calendar year include investment of US$ 320 million by Jeff Morgan Capital in Compact Disc Indias film city project, investment of US$ 318 million by Warburg Pincus in Oceanus Real Estate and Ascendas Indias investment of US$ 190 million in Phoenix Infocity. Further, US$ 86 million was invested by Tata Realty in Peepul Tree Properties.

Small Cap Real Estate Stocks To Outperform In The Year Ahead, (CSA, KRG, KRC, LHO, HST) Defensive stocks help during market volatility Fast growing economy like ours with a liberalised industrial and services sectors, the chances of finding small and mid-level companies with potential to becoming large corporations are much better than the developed economies like the US and Europe. Citigroup Global Markets believes that small cap stocks in Real Estate Investment Trusts (REITs) are expected to outperform in the coming year. Some of the firms favourite stocks include Cogdell Spencer Inc. (NYSE: CSA), Kite Realty Group Trust (NYSE: KRG [FREE Stock Trend Analysis]), Kilroy Realty Corporation (NYSE: KRC), LaSalle Hotel Properties (NYSE: LHO), and Host Hotels and Resorts Inc. (NYSE: HST [FREE Stock Trend Analysis]). Citigroup maintained a Buy rating and reduced the risk rating for Cogdell and Spencer to High from Speculative reflecting lower levels of volatility in the economic and financial environment. The firm upgraded the rating on Kite Realty Group to Buy, reflecting a number of positive catalysts on the horizon. For Kilroy Realty Corporation, the firm reiterated a Buy rating reflecting attractive relative valuation and low balance sheet leverage. The firm believes future lease-up opportunities in an improving economy could be a possible catalyst. Citigroup reiterated Buy rating for LaSalle Hotel Properties for the following reasons 1) recently renovated portfolio with the potential to gain market share in early stages of cyclical recovery; 2) strong balance sheet positioned for external growth; 3) experienced senior management team. The firm increased 2010-11 Fund From Operations (FFO) estimates for Host Hotels and Resorts Inc. to reflect the company's recent $400m convertible notes issuance, the proceeds of which will be used to redeem higher coupon senior notes. The firm views each of the companies as discounted value opportunities with most names significantly underperforming peers year to date.

MID CAP REAL ESTATE COMPANY:

Indian stock markets have gone for a tailspin since last 9 months. Moreover, stocks have tumbled in a big way when compared with the benchmark indices. Under broader indices, mid-caps have under-performed hugely vis--vis large-caps. Lets have a check on 5 mid-cap stocks that can be bought from investment perspective based on their strong fundamentals: 1) Jain Irrigation: This is Indias biggest irrigation company with 55% share in domestic Micro Irrigation systems; boasts of multi-product industrial profile and is largest integrated agri business player. With increased emphasis on agricultural sector, the sector is likely to remain in good books of the finance minister in each of the Union Budget announcements. 2) Oberoi Realty: This is Indias most prominent real estate developers with almost no debt or leveraged position on its books. Today, almost all the realty firms are valued at depressing levels on account of huge debts on their books. At such times, investors can latch on to this stock and wait for revival in the sector, to hog huge out-performance after a few quarters of time horizon. 3) PFC: This state-run power financing company has reached a point of lucrative valuations, pushed down by the project execution concerns in the power industry. However, analysts point out that the company has corrected way beyond its sound fundamental limit and can be bought for long-term investment. 4) IRB Infrastructure: This Company leads the race to Indias road construction. Though, IRB does not boast of low-debt story, healthy cash flows makes up for its debt-servicing costs, and strong earnings prospects. 5) Edu comp Solutions: This stock has grinded down from all the way to Rs.1000 at its peak to around Rs.230 in a years time. The stock has been battered on corporate governance issues more recently after witnessing IT raids in its offices. However, like agriculture, even education sector remains in sweet spot in the good books of the sector that need reforms by the government.

LARGE CAP COMPANIES:

Organized Real Estate Industry in India is only a couple of decades old .Real Estate Industry in India took off with the global boom in the Realty Sector which percolated down to India as well. A list of the chief players in Indian market is given below: India Bulls Real Estate: One of Indias largest listed developers developing residential and commercial real estate. Being a focused regional player, more than 90% of IBRELs portfolio by value is in the three major markets of Mumbai, NCR and Chennai. Established in 2000, the company has grown into one of the leading Indian business houses with its companies being listed on Indian and overseas financial markets having a combined net worth in excess of Rs. 18,000 crores. the current market cap being Rs.6,545.17 crore. HDIL: Ranked as Indias fastest growing real estate company by Construction World-NICMAR in October 2007 & with a current market cap of Rs.8,567.76 crore, Housing Development & Infrastructure Limited has established itself as one of Indias premier real estate development companies, with significant operations in the Mumbai Metropolitan Region. HDIL is a public listed real estate company in India with shares traded on the BSE & NSE Stock Exchanges. With operations spanning every aspect of the real estate business, from residential apartment complexes to towers & townships, commercial premium office spaces and retail projects like worldclass shopping malls. it is Indias largest slum rehabilitation company, & was given the Mumbai International Airport Slum Rehabilitation project in October 2007,one of the largest urban rehabilitation projects in India.. DLF: DLFs chief business is to develop housing, marketable and retail properties. Currently it has undertaken the development of 70 million sq ft of housing projects which it intends to finish in the next three years. DLF has joined hands with Delhi Development Authority to develop townships in Amritsar, Pune, Gurgaon, Mumbai, Chennai and Goa. DLF has been the construction company behind different malls in the major cities in India. The company is also developing 50-75 hotels along with Hilton Hotels and infrastructure and SEZ in India in collaboration with Laing ORourke (UK).The current market cap is around Rs.51,832.22 crore.
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 Tata Projects: Tata Projects registered an annual turnover of Rs 2,300 crore on July 1, 2007. With more than 1,500 professionals the company has emerged as one of the chief player in EPC projects. Over the last four years, it has attained a CAGR of 50 per cent which quadrupled its annual turnover of 2006-07. Tata Projects functions in concentrated divisions like broadcast and distribution, steel, power production, oil, gas and hydrocarbons and industrial infrastructure. Unitech: Recently Ramesh Chandra, Unitechs Chairman has declared the investment of $ 720 million by his company in the coming four years to develop 28 hotels along with Marriott International. The market capitalisation of the company is Rs.16,867.40 crore.Its chief activities include construction, expansion of real-estate, consultancy in associated sectors, hotels, electrical broadcast and information technology. Sobha Developers Ltd: With an annual turnover of Rs 1,189 crore, Sobha Developers Ltd was initiated by the now chairman PNC Menon in the year 1995. On June 30, 2007, the company has 3,706 skilled professionals working for it. At present it owns Rs 3,500-acre land in eight Indian cities namely Coimbatore, Bangalore, Mysore, Chennai, Thrissur, Kochi, Pune and Hosur. The companys clientele include some of the top players in IT, hotel and construction sector such as Hewlett Packard, Mico, Infosys, Ramaraju Developers, Dell, Timken, etc. Shapoorji Pallonji & Co: The Company has more than 3,500 professionals working for it and is largely driven by its loyalty to consumer satisfaction. Some of the major projects undertaken by Shapoorji Pallonji & Co are World Trade Centre, Mumbai; TELCO industrial complex, Pune; Bhabha Atomic Research Centre, Kalpakkam; HSBC Bank, Mumbai; Hotel Taj Intercontinental, Mumbai; Bank of India, Mumbai; Indira Gandhi International Airport, New Delhi, etc. the company has created magnum opus of construction and has been a consistent executer of challenging projects.

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LARGE CAP COMPANY:

Indiabulls is an Indian company with its presence in the Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex and Power sectors. The company was founded in May 2000 as an online stock brokerage and has since then diversified into its current portfolio. Indiabulls Group Indiabulls Group is one of India's large Business houses[citation needed]. The Group has several businesses which cover a wide spectrum of Real Estate, Financial Services, Securities, Power and Chartered Aviation. Many of the companies are public entities and are listed on Indian stock markets. Indiabulls was conferred the status of a Business Superbrand by The Brand Council, Superbrands India in 2008.

MANAGEMENT TEAM

MR. VIPUL BANSAL- CEO MR. NARENDRA GEHLAUT- Joint MD MR. MEHUL JOHNSON- ED MR. O P AGRAWAL- COO Col (Retd) S.S. Kadyan- Head FM(Facility Management) MR. VIRENDER SINGH - Head Construction

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OVERVIEW Indiabulls Real Estate Limited is a real estate company which does development of "high-end office and commercial complexes, premium residential developments, mega townships, retail spaces, hotel and resorts, state of the art special economic zones and infrastructure development Indiabulls Real Estate is one of the largest real estate company in India with development projects spread across high-end office and commercial complexes, premium residential developments, mega townships, retail spaces, hotel and resorts, state of the art special economic zones and infrastructure development. It has 31 ongoing projects totaling 61 million square feet, 2551 acres of SEZ development and additional land bank of 580 acres. Each project bears a stamp of thoughtful solutions and highest quality. The company has partnered with specialists from India and abroad working on various aspects including design, landscaping, engineering and structural strength of each of the developments. It further employs most advanced construction equipments and technologies that guarantees on time delivery like advanced jump start technology, advanced logistics and vertical transportation systems, wind tunnel engineering as also international quality construction grade steel and the highest strength M70 and M80 concrete. The company has more than 90% of its portfolio in Mumbai, Delhi (NCR) and Chennai markets with $ 900 million of land bought through government auctions. The main focus of Indiabulls Real Estate is construction and development of properties, project management, investment advisory and construction services. Indiabulls Real Estate has delivered a record 3.3 million sq ft developed space valued at $ 1.75 billion (within 4 years of inception). This is fastest and largest delivery in value terms by any Indian real estate developer in the same time period. It has partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate in the country, is listed on the Mumbai, Luxembourg and Singapore Stock Exchange and has been assigned 'A+' rating.

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INDIABULLS REAL ESTATE LTD FOCUS: CLUB MOSS, PANVEL

Indiabulls Green Panvel sprawled majestically across acres of greenery is an integrated township of residential and commercial towers. The upscale development has been created to provide high end school, premium hospital, pharmacy, shopping centre all within walking distance as well as, restaurants library, entertainment court for easy accessibility to enjoy international standards of living. In addition Club Moss, a 100,000 sq ft resort like clubhouse offers the residents generous spread of indoor sports, fitness and recreation facilities. Designed by Architect Hafeez Contractor in a unique amoeba shape with lush green cover, the structure seems to emerge from the earth making the building aesthetically breathtaking while also providing sufficient heat and noise insulation to the interiors. The modernly designed complex is divided in three levels to allow abundant space to each facility including lounging area, bar counter, banquet hall along with a party lawn. Here residents can expect host of indoor games such as table tennis, squash, snooker and cards room and outdoor activities like cricket pitch, cycling and jogging tracks, tennis, badminton and basketball courts. The club also provides a high powered gymnasium, a meditation and aerobics nook as well as swimming pool to revitalize, spa with Jacuzzi, steam, sauna and massage room to unwind and salon and music and dance room to spend leisure time. For children the clubhouse provides kids zone creche and a toddlers pool.
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INDIA BULLS REAL ESTATE LTD PROJECT Residential Projects: Indiabulls Real Estate has a pan-India presence with premium yet affordable housing projects spread across cities of Gurgaon, Ahmedabad, Vizag, Hyderabad and Madurai. Indiabulls Greens in Panvel and Chennai are the Green Living integrated townships initiated by the company.

Commercial Projects: Indiabulls Real Estate commercial development includes high end commercial projects like One Indiabulls Centre and Indiabulls Finance Centre in Mumbai, Indiabulls Mint an integrated commercial and retail complex at Thane and company's flagship retail offering Mega All at Vadodra, Panvel and Jodhpur.

SEZ Projects: Indiabulls Real Estate integrated special economic zone developments have been designed to offer world class amenities and cutting edge infrastructure. Indiabulls Technology Park, Gurgaon is dedicated to IT/ITES businesses while Indiabulls Neocity at Nashik is the multi product SEZ.

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Indiabulls Real Estate in NSE AND BSE Last Week: BSE: 532832 | NSE: IBREALEST | ISIN: INE069I01010

Bottom of Form 74.55 -1.75 (-2.29%) LOW 73.10 76.80 HIGH BSE : Sep 23 0.00 74.55 Price Quantity 0 268 74.55 -1.75 (-2.29%) LOW 73.05 76.90 HIGH

17:00

BSE Sensex 532832 73.10 -4.30 (-5.56%) Sep 30 - Close

16,453.76 -1.46% 73.10 -5.56%

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BOM real-time data - Disclaimer Currency in INR Range 72.45 - 78.50 52 week 70.75 - 218.50 Open 76.65 Vol. 802,613.00 Mkt cap 29.41B P/E 15.05 Div/yield 0.30/0.41 EPS 4.86 Shares 402.28M Beta Inst. own -

NSE : Sep 23, 18:30 Open Price High Price Low Price Prev. Close 75.20 76.90 73.05 76.30 Volume 3429147 218.55 52 Wk High 70.70 52 Wk Low See Technical Chart

Price Quantity

Bid 74.55 9131

Offer 74.60 66

Market Cap 3003.7

* EPS 1.11 (TTM)

* P/E 67.16

* P/C 62.65 * Div Yield(%)

* Book 159.20 * Price/Book 0.47 Value Market Lot 2000 Face Value 2.00

Div(%) 0.00% Industry 13.53 P/E

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1 Year Open Price High Price Low Price Last Price Volume 180.50 181.30 171.00 172.25 586678

Current % Gain/Loss 75.10 76.80 73.10 74.55 672110 -56.72 14.56

1 Year Open Price High Price Low Price Last Price Volume 181.50 181.50 171.25 172.25 4495599

Current % Gain/Loss 75.20 76.90 73.05 74.55 3429147 -56.72 -23.72

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Financials of Indiabulls Real Income Statement (Jun '11) (Mar '11) Quarterly Net Sales Other Income PBDIT Net Profit 34.18 14.96 35.90 1.98 Annual 159.10 14.63 125.17 45.81 Balance Sheet Total Share Capital Net Worth Total Debt Net Block Investments 80.31 6414.27 112.00 16.90 3426.97

Profit & Loss | Half Yearly Results | Quarterly Results

Net Current Assets 3082.40 Total Assets 6526.27

Balance Sheet | Finished Goods | Raw Materials

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Groups: Construction & Contracting - Real Estate Company DLF Oberoi Realty Godrej Proper HDIL Prestige Estate Last Price Market Cap 198.00 221.85 646.60 100.40 90.70 33,615.52 7,281.85 4,516.50 4,166.64 2,975.63

Simple Moving Averages - Indiabulls Real Days 30 50 BSE NSE

81.07 80.99 91.26 91.17

150 108.86 108.85 200 113.13 113.11

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HDIL is a listed real estate development company in India, with significant operations in the Mumbai Metropolitan Region. HDIL's business focuses on Real Estate Development, including construction and development of residential projects and, more recently, commercial and retail projects, Slum Rehabilitation and Development, including clearing slum land and rehousing slum dwellers, and Land Development, including development of infrastructure on land which the company then sells to other property developers. HDIL has an integrated in-house development team which covers all opment from project identification and inception through construction to completion and sale. Since incorporation in 1996, HDIL has developed 23 projects covering approximately 19,290,000 square feet (1,792,000 m2) of saleable area, including approximately 12,730,000 square feet (1,183,000 m2) of land sold to other builders after Land Development, primarily in the Mumbai Metropolitan Region. HDIL also have constructed an additional 1,900,000 square feet (177,000 m2) of rehabilitation housing area under slum rehabilitation schemes. HDIL's residential projects generally comprise groups of apartments, towers or larger multi-purpose township projects in which individual housing units are sold to customers. The commercial projects are a mix of office space and multiplex cinemas. The retail projects focus on shopping malls. They usually follow a build and sell model for the properties they develop.

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BOARD OF DIRECTORS
Rakesh Kumar Wadhawan Executive Chairman Sarang Wadhawan Waryam Singh Director Ashok Kumar Gupta Director Satya Pal Talwar Independent Director

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Projects Underway

Slum rehabilitation in Mumbai demands long-term, iron-willed resolve: 60% of the citys habitable area is occupied by slums. But our commitment to this challenge never wavers. We envision a day when every citizen has a dignified, secure lifestyle. And when a proud, resurgent Mumbai takes its rightful place among the finest cities of the world. Indias largest slum rehabilitation company is a title we carry with pride. Since its incorporation in 1996, the company has developed 4.31 million square feet of rehabilitation housing area, under slum rehabilitation schemes. In the process, we are happy to have given approximately 30,000 families a home and the chance to live with dignity. We are also proud that by freeing up land for infrastructure, were helping Mumbai transform into a world-class metropolis.

Mumbai Airport Rehabilitation Project | Santacruz (E), Mumbai (MIAL) A vital public project It is the largest urban rehabilitation scheme in India It covers approximately 85,000 hutments Mumbai Airport Rehabilitation Project

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Overview The Mumbai Airport (MIAL) Rehabilitation project A vital public project

Highlights

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Largest Urban Rehabilitation Scheme in India No. of Hutments 85,000 approx. Scale similar to Town Planning & Urban Renewal Scheme Vital Public Project Approved FSI of 4 Airport Modernization & Expansion Provide World Class Infrastructure Generation of more than 10,000 jobs over next few years Phase 1 of the project has already begun, with 85% of the work completed on a development in Kurla, intended to rehabilitate about 20,000 slum dwellers from Vile Parle, Santacruz and Sahar. The first 16,000 tenements are scheduled to be allotted shortly. It is the first step in a vast project, aimed at eventually freeing 275 acres of encroached airport land for development. Projects Underway Located in premium and upcoming destinations, easily accessible and equipped with modern amenities, HDIL residential complexes meet every need of the discerning home buyer. When you invest in an HDIL residence, you get more than elegant fixtures and premium finishes. You get thoughtful planning, convenient amenities and a warm, welcoming environment. Because HDIL understands that you dont just buy a house. You build a home.

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Whispering Towers | Mulund - (W), Mumbai

2, 2.5 and 3 BHK Luxurious apts. in a Ground + 45 storied building. Club House, Main Pool, Junior Pool

Premier Exotica | Kurla (W), Mumbai

2 Buildings, each with 12 residential floors Easily accessible from LBS Marg and Kurla railway station Clubhouse, gym, landscaped gardens.

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Housing Development & Infrastructure Ltd. (HDIL)

At 16:00:39/September 30 on NSE: INR-4.15 -4.06%

Pr. close: 102.10 Open: 101.55 Day

High: 103.90 Low: 97.50

52 week
High: 291.20 Low: 94.90 Volume Market Cap (Rs. crore) P:E Ratio E.P.S. (Rs.) Open Price High Price Low Price Prev. Close 101.80 103.80 97.50 102.10

10,013,044 4,064.93 4.72 21.62 Volume 52 Wk High 52 Wk Low 2831397 299.60 95.00

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CONCLUSION:
AS COMPARING BOTH COMPANIES WE CAN CONCLUDE THAT HDIL HAS MORE EARNING PER SHARE WITH LARGER CAPITAL INVOLVE WITH EXPERTISE WORK FORCE.WITH EPS RATIO OF 21.62 HDIL PROVES MORE EFFICIENT AND RELIABLE COMPANIES. AS INDIAS FASTEST GROWING REAL ESTATE COMPANY BY CONSTRUCTION WORLD NICMAR IN OCTOBER 2010.

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