TARC Ltd
Stock Snapshot
Price Performance
Vista Outlook
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TARC Limited's recent transition into a growth phase, highlighted by positive EBITDA and revenue recognition from its flagship Tripundra project, underscores management's effective strategy in the luxury residential segment. This focus on design-led, end-user-centric developments has resulted in strong presales and improved pricing power, which are critical for revenue growth. Management's commitment to disciplined execution and inventory monetization aims to generate ₹10,000 crore in cash flows over the next five years, supporting Vista's forecast of accelerating revenue growth despite anticipated margin pressures. The company's roadmap to achieve zero net debt by FY2030 further enhances its financial stability, although elevated leverage and weak interest coverage present risks. The broader real estate sector's favorable conditions, driven by urban expansion and improving pricing power, align with TARC's growth trajectory. However, execution risks and macroeconomic volatility remain watchpoints. Over the next 12-24 months, TARC's key opportunities include capitalizing on its strong project pipeline and market positioning, while headwinds may arise from financial stress and potential market fluctuations
Why We Like This Stock
- Successful turnaround with positive EBITDA and revenue recognition from the Tripundra project
- Strong presales and pricing power in the luxury residential segment enhance revenue growth potential
- Management's disciplined execution strategy aims for significant cash flow generation and zero net debt by FY2030
Things To Watch Out For
- Elevated leverage and weak interest coverage increase financial risk
- Execution risks associated with project delivery and market volatility could impact performance
- Cautious investor sentiment reflected in recent trading may limit stock price appreciation
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 111 | 34 | 330 | 1,048 | 3,686 |
| Profit Before Tax (Cr.) | -80 | -243 | 15 | 918 | 2,463 |
| PBT Margin | -72.1% | -714.7% | 454.5% | 87.6% | 66.8% |
| Net Profit (Cr.) | -80 | -244 | -17 | 688 | 1,847 |
| Earnings Per Share | -2.7 | -8.3 | -0.6 | 23.3 | 62.6 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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TARC Limited engages in the real estate activities and construction business in India. It constructs and develops residential, commercial, township projects; SEZ; IT park; and malls. The company also owns and leases real estate properties; and sells real estate units, such as land, plots, apartments, and commercial units; as well as holds land banks. The company was formerly known as Anant Raj Global Limited and changed its name to TARC Limited. The company was incorporated in 2016 and is based in New Delhi, India.