Business Details
Marg Limited is in business of Real Estate Development and was established in year 1994. Different development areas of the Company are
- Marg Karaikal Port – It operates fully functional port of having a current capacity of 21 MMTPA.
- Real Estate Residential – 23 million sq. ft. integrated industrial and services township, MARG Swarnabhoomi.
- Real Estate Commercial – 1.85 million sq.ft. integrated development – MARG Junction Mall
- Marg EPC – It has executed projects worth more than 3,800 crores in its EPC division.
It has also ventured into Multi level car parking construction as well. Under the EPC division it takes projects in marine, industrial projects, urban infrastructure, solar & alternate energy sectors.
EPC division has some big names in its client list including Railways, BHEL, NBCC and IOC.
Stock Performance
Above is long term price performance of the Company. As you can see investors have lost money in this Counter. In last one decade it has not given any returns to investors. After the steep fall in stock prices it has not recovered and is languishing below 10 levels.
My Opinion
Real Estate development Companies have not performed on stock exchange in last one decade. The sector has not performed for investors. Barring few big names it is not safe to invest in this sector.
The liquidity crunch and Economic slowness have impacted it great deal. Over the years the smaller players are unable to compete with bigger ones and the sales growth is also not favoring them.
I would suggest not to invest in capital intensive business as of now. Even if you have to invest in this sector then it is better to invest in Companies with sound backing (Companies which are bigger or have backing of established groups).