TARC: A hidden gem below Rs 200: here’s a complete analysis

TARC Ltd (The Anant Raj Corporation) began its journey as a construction and contracting company, gradually evolving into one of the largest real estate development firms and land bank holders in the New Delhi Metropolitan Area. With key developments spanning Residential, Hospitality, Commercial, and Retail projects, the company has consistently demonstrated its commitment to diverse verticals within the real estate sector.

The company, formerly known as Anant Raj Global Ltd., transformed, rebranding itself as TARC Ltd. in April 2021. This change marked a strategic shift and expansion of the company’s vision and focus within the real estate landscape.

TARC Projects Limited, a wholly-owned subsidiary of TARC Ltd, has recently garnered accolades by obtaining the Registration Certificate for ‘TARC Kailasa’ in Patel Road, New Delhi. This high-rise luxury residential development, sprawling over 6 acres, received the Project Registration from the Real Estate Regulatory Authority (RERA), NCT of Delhi, on December 18, 2023.

Anticipated Launches and Sales Surge in FY24 

Key launches in New Delhi and Gurugram are poised to catapult TARC Ltd’s sales bookings up to four times in the fiscal year 2024. The company’s ongoing projects are strategically positioning it among the leading real estate developers, with a primary focus on luxury high-rise buildings in Delhi. Anchored by Chairman Anil Sarin and Managing Director & CEO Amar Sarin Sector, TARC Ltd has transitioned from a construction company to a major real estate player, boasting over 500 acres of fully paid-up land in New Delhi, Gurugram, Manesar, and Greater Noida.

Ongoing Project Pipeline and Financial Strength 

TARC Ltd’s ongoing project pipeline indicates a Gross Development Value (GDV) of Rs 7,500 crores, showcasing the financial robustness of the company. Three prominent projects currently under construction include TARC Tripundra, TARC Kailasa, and TARC Ishva.

1. TARC Tripundra: Launched in October 2023, the project has already booked 80% of its total value, amounting to Rs 750 crores within just one year of launch. With a sales value increase of 38% to Rs 900 crores, the superstructure is nearing completion, with anticipated revenue of Rs 900 crores by 2025.
2. TARC Kailasa (Patel Road Residences): Located in the heart of Delhi, this ultra-luxury project commands a premium price per square foot, reflecting its prime location. With a construction cost of Rs 5,500 per square foot, it is expected to be sold at Rs 23,500 per square foot, generating revenues of Rs 4,000 crores.
3. TARC Ishva (63-A Residences): Situated in Sector 63A, Gurugram, this project featuring premium fully fitted apartments is set to be launched in the next three months, holding a sales potential of Rs 2,500 crores.

Promising Valuation and Future Growth 

The valuation of TARC Ltd’s launched portfolio reveals significant potential. With already booked sales of Rs 750 crores, the projected cash flows of Rs 250 crores till FY24, and expected receivables in FY25 & FY26, the company’s financial outlook appears promising.

TARC Ltd’s upcoming portfolio, poised for launch, is expected to propel the GDV from Rs 7,500 crores to an impressive Rs 15,000 crores. This substantial increase in anticipated revenue underscores the company’s commitment to transforming Delhi’s skyline with upscale residential developments.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.