u/Prestigious-Tale-197

Some of you might remember I had posted about Lancor in May from my old account (u/Immediate-Alarm1201, not using that one now). Stock was at 24.58 then and hardly anyone was tracking it. The volume has shot up ever since.

This week it touched 41.75. (70% returns)

So Q1 FY27 numbers came. 17.24 cr PAT for the quarter. Out of that 15.33 cr is from selling half a floor of Menon Eternity. Half floor. They still have four and a half floors left and the whole building is on the books at 28 cr. So basically every time they sell a floor the profit lands straight in P&L and book value goes up. No revaluation drama needed, it will happen floor by floor.

Apart from that, Lancor Ananya in Mylapore got RERA and all flats already sold. In August they signed one more JDA, Lancor Kamalam in Valmiki Nagar, 20 flats and 10 of those come to Lancor. So the normal business is also going on, it's not only the Menon Eternity story.

Now valuation. Book was 26.81 in May, Q1 profit would have added 2 rupees or so, so say 29. Add the building to that. 190 cr market value minus 28 cr on books is 162 cr, take out 25% tax, around 120 cr comes into net worth once the floors are sold. On about 7.3 cr shares that's 16 rupees a share extra. So actual book is more like 45, not 29. At 40 you are still below that. Other listed realty names are at 3 to 5 times book, and that also on land sitting at old cost. Even if you give Lancor only 1.5 times on the corrected book because it's small and illiquid, you get 65 to 70. And at 3 times, easily stock price can attain 150 range.

Also the 30 paise dividend is coming, includes a special dividend for the Menon Eternity win. Record date is 21st this month.

40 still doesn't fully price the building in my view. And anyway real estate has become the semiconductor sector of India these days, anything with a RERA number is flying lol. It's an SME type counter though, so do your own research.

Holding, haven't sold a single share. Not a recommendation.