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Sunteck Realty: Inventory > Market Cap

Inventory:

Source: Exchange Filing of Sunteck Realty Ltd

Market Cap:

3 replies on “Sunteck Realty: Inventory > Market Cap”

This appears to be common for most RE companies. Purvankara has inventories of 4,500 crores (March 2019) v/s 900 crore MCap (today).
But the issue is not what is stated in the B/S as Inventories. The issue is, is it properly valued? Inventory has to be valued at Cost or Realisable value whichever is lower. Now, what is the estimated realisable value, in a post-Covid scenario? This has to be assessed on 31 March 2020 balance sheet. That will be the issue, and how the auditors will issue their audit reports thereon.

Debt also matters as does the location of the properties.

In this case, the balance sheet is fairly strong and the properties are in prime locations.

Seems to be correct and Management intent is also shown the same shareholders will get dividend full and half for promoters shows companies Management quality.

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