Country Condo's Limited engages in the real estate business in India. It develops and sells residential layouts; and constructs compound walls, etc. The company was formerly known as Neocure Therapeutics Ltd. and changed its name to Country Condo's Limited in December 2006. Country Condo's Limited was incorporated in 1987 and is headquartered in Hyderabad, India.

India

Country Condo's Limited

Real Estate

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

COUNCODOS.NS reported revenue of INR 200mn in the last 12 months, down 21% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 69% from FY23 to INR 0.07.

The stock has been growing steadily in the past six months, adding 47% in total. The stock has outperformed its global peers from the same sector and industry (as shown above), surpassing them by 51ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is positive. Usually, this means that a fairly valued or slightly undervalued stock has become more 'expensive', indicating that the market, in general, may have gained short-term confidence in the stock.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 5.3% in the last 12 months, a decline from 9.5% in FY23. 

Historically, COUNCODOS.NS has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 2.8%, down from 7.1% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 2.2%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 1.6% in the last 12 months, a decrease from 5.4% in FY23. 

Country Condo's Limited reported a return on equity (RoE) of 2.3% in the last 12 months, down from 7.6% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.8 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

COUNCODOS.NS has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note low margin volatility, strong debt servicing capacity, adequate interest coverage, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, poor working capital management, and poor cash flow generation.

In highly turbulent market conditions, COUNCODOS.NS is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, COUNCODOS.NS is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. We would also like to highlight the average intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITDA, overpriced on P/FCF. 

Country Condo's Limited

₹ 9.45

3

Country Condo's Limited

₹ 9.45

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 9.45

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