Prozone Intu Stock Research 2018

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Prozone Intu Overview

Prozone Intu is real estate developer. They are mainly into area of Residential, Retail and Commercial space developers. Prozone Intu stands for Prozone an Indian Real Estate company and Intu Properties Plc (INTU)  UK’s largest retail real estate developer.

Major projects of this company as of now are in

  • Coimbatore
  • Aurangabad
  • Nagpur

For the readers let me clarify the Retail term used above. Retail term is for Malls or Shopping complexes. The company is specialized in Shopping Malls creation. Currently it has below projects running/ completed

  • Prozone Mall Retail space in Coimbatore and Aurangabad
  • Prozone Palms residential projects in Nagpur and Coimbatore
  • Prozone trade center and Saral bazar commercial space in Aurangabad

As per Company website it purchases land bank and construct retail, commercial and residential projects. The Real Estate projects help in generating annual income over long term.

The business model is to acquire large land parcels at select locations in high growth corridors within city limits. Subsequently design, develop, execute and manage high quality Regional Shopping and Entertainment Centres and on the conjugant land bank to develop and sell mixed-use Residential Townships and Commercial Office Blocks to create new city centres across the rapidly evolving Indian urban landscape.

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Prozone Intu Share Performance

Below graph shows the share price performance of Prozone Intu since IPO days. This will help us get an idea of returns this company has generated for investors.

Prozone Intu Share Price performance 2018
Prozone Intu Share Price performance 2018

Prozone Intu made its debut at 20 odd levels. The stock has since then have never breached that level (Note it has gone two or three marks down) but that can be neglected.

So investors have not lost money in the counter. The stock did move close to 80 giving investors solid 4 fold returns if they have invested at 20 odd levels. But in recent correction it has moved down as well.

This period was not very good for Real Estate sector.So the stock has performed well compared to the sector. There is not negative return what so over and that is very good point for any company.

Prozone Intu My Opinion

Prozone Intu is in portfolio of Rakesh Jhunjhunwala. The other interesting thing about company is its International association. Intu is leading Retail Real Estate devloper in United Kingdom. It also has projects in Spain as well.

This international tie up benefit the company immensely. It will bring the experience of Intu on board.Both of the points make this company interesting play. The projects once realized will drive the revenue and should propel the company to new heights if executed perfectly.

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In you are interested in Real Estate Construction play then you should consider other real estate companies in portfolio of top investors of India. Note Rakesh Jhunjhunwala also have other Real Estate Construction companies in his portfolio.

Conclusion

As mentioned in previous articles I am not fond of Real Estate or Construction companies but this one have couple of things going for it (mentioned in my opinion section above). It may turned out to be interesting play in this segment.


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