Shriram Properties IPO: How good is it?

In our story, Shriram Properties IPO: Information analysis, we shed light on the critical details of the IPO, along with important information about the company. Here we will answer some questions about Shriram properties and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? No. In the last financial year ended March 31, 2021, the company reported a loss of Rs 45 crore before taxes. 2) Will the company be able to scale up its business? Yes. Housing demand in India is expected to increase, supported by an increase in the overall population and a growing urban population. Apart from this, government reforms and initiatives such as the introduction of real estate reforms RERA, schemes for the promotion of affordable housing, and implementation of GST has increased the demand for housing which provides enough room for the companies in this sector to grow. 3) Does the company have recognisable brands truly valued by its customers? Yes. The company is part of one of the prominent business groups, the Shriram Group, which has an operating history of four decades in India and has a very strong brand recall. 4) Does the company have high repeat customer usage? No. The company operates in a housing development business that does not involve frequent purchases, and thus repeat customer usage tends to be low. 5) Does the company have a credible moat? No. The company is part of the real estate sector which is highly regulated and faces stiff competition from the organised and unorganised players.