Top 4 Realty Stocks With Better Collection to Sales Ratio to Look Out For
For real estate, booking means the valuation of the properties sold by the company, whereas collection refers to the amount realized by the company from its customer. The ratio of collections to sales is used to analyze the rate at which the developer is able to realize the cash from the sales booked. The higher the ratio, the better the company is in collecting money from its sales; hence, it becomes an important indicator for the evaluation of the realty companies.
Prestige Estates Projects Ltd. is a Bengaluru-based real estate development firm that deals in real estate that ranges from residential to commercial and retail spaces. Prestige Estates Projects’ residential projects include apartments, villas, townships, and plotted homes. The firm also has operations in the hospitality sector, where it has hotels, resorts, convention centers, and serviced residences among others.
With the market capitalization of Rs. 67,211 Crores, the shares of Prestige Estates Projects Ltd were trading at around Rs. 1560 per share and is trading at a P/E of 59 per share. The company recorded collections of ₹4,802 crore against sales of ₹6,579 crore, resulting in a collection-to-sales ratio of 73.0%.
DLF
DLF is among the largest publicly traded real estate companies in India and engages in the residential, commercial, and retail sectors of real estate development. It deals in the acquisition of land, project planning, construction, and marketing of its projects. DLF also manages commercial offices, retail centers, and hotels among other activities.
With the market capitalization of Rs. 1,67,368 Crores, the shares of DLF Ltd were trading at around Rs. 676 per share and is trading at a P/E of 38.9 per share. The company reported collections of ₹2,406 crore compared with sales of ₹657 crore, resulting in a collection-to-sales ratio of 366.3%.
Lodha Developers Ltd
Lodha Developers, which earlier went by the name Macrotech Developers, is a property developer located in Mumbai and was founded in 1980. The firm specializes in residential, office and retail space development and even provides commercial space leasing services. Their business scope has been widened to include warehousing and logistics, light industries, and data parks.
With the market capitalization of Rs. 1,20,516 Crores, the shares of Lodha Developers Ltd were trading at around Rs. 1206 per share and is trading at a P/E of 29.2 . The company recorded collections of ₹4,210 crore against sales of ₹4,630 crore, resulting in a collection-to-sales ratio of 90.9%.
Godrej Properties Ltd
Godrej Properties is a real estate development company belonging to the Godrej Group of companies. This firm mainly engages in developing housing projects, and it has gained a foothold in many of the Indian cities. Godrej Properties has its development process backed up by the heritage of the Godrej Group, while it concentrates on housing and other related developments.
With the market capitalization of Rs. 57,655 Crores, the shares of Godrej Properties Ltd were trading at around Rs. 1914 per share and is trading at a P/E of 35.6 . The company reported collections of ₹4,348 crore compared with sales of ₹8,651 crore, resulting in a collection-to-sales ratio of 50.3%.
