DB Realty Overview
DB Realty is real estate development company based on Mumbai region. Most of the construction work this company does is based in Mumbai. The company is pretty new and was established in year 2007.
Some of the completed projects of the company are Mahul nagar Chembur, DB Woods Goregaon. The company mainly focuses on Residential projects and there are many projects in pipeline. Some of the notable projects in pipeline are
DB Park Central Mumbai , Resham bhavan Church gate , Jony Castle Colaba and many more. All these projects are based in and around Mumbai. There is no project as of now which is outside Mumbai area. This concentrated portfolio of projects is one key aspect of this company.
Now lets us see how the Company has performed on market. Does this company made money for investors?
DB Realty Share Performance
The company came into existence in year 2007. It also got listed pretty early as well. So lets see how the company stock price has performed from IPO days. This is good indicator of company performance over the years. If a company is great but does not make money for investors then it is of no use.
Below graph shows price movement of the company from initial IPO days
DB Realty has debuted on Exchanges at around 450 marks. For some time it traded around that mark but then there was steep fall during the market crisis of 2008. The stock has not recovered from that fall till date.
Only once it traded above 100 for couple of months in year 2013. From that point onward it is trading well below 100 marks. The stock is now at the lowest point of its life. So the company has not performed well for investors.
People have lost good amount of money if they invested in IPO days. Even for years the range bound movement is intact. This period was bad for all Realty sector stocks. The same story was of other Real Estate stock Anant Raj we analyzed before.
DB Realty My Opinion
DB Realty has not performed well for Investors. Ten years is good enough time for any stock to perform. But this one have not provided any positive returns. If you leave the initial IPO days the stock is range bound. 100 is upper limit of the stock and 50 is lower limit.
Most of the times the stock trades between these two ranges and seldom it crossed below 50 as well. So in first look you can clearly see there are better stocks to invest in market. So the question is Why has Rakesh Jhunjhunwala has invested in this stock?
There are too many upcoming and in progress projects of DB Realty if you check the website of the company. It has completed far less projects then what it in plate for it or what is in progress. All the projects are in Mumbai sub urban area or Mumbai area.
Mumbai is one of the most prime location for Real Estate in Country. The projects will slowly get completed and unlock the potential of the company.This will in turn give boost to the share price. This may be one reason Big Bull has invested in the company.
Personally I dislike the Real Estate sector. These companies take money from banks and have huge debt on their books. With so many debt related crisis creeping in I personally do not want to invest in a company with high debt working in a Real Estate sector.
There are many real estate companies in portfolio of top investors. You can make stock watch list of these companies and analyze at your end if you are interested to invest in a real estate company. It will also give you idea of companies present in this sector.