MULTIBAGGER STOCK PICK

MARATHON NEXTGEN REALTY LTD (Nse Code-Marathon & Bse Code-503101)

(Face Value – 5.00, 52w High – 107.95, 52w Low – 42.05)

Industry CMP Recommendation Targets Time Frame

Marathon Nextgen Realty is Rs.83-84/- Buy at cmp and add Rs.160/240/320/400+ 6-12 Months
primarily engaged in the on declines with sl
business of construction, Rs.60/-
development and sale of
commercial and residential
real estate projects.

*All Parameters on Consolidated Basis (As on 31.03.2021)

KEY FUNDAMENTALS VALUATIONS

Market Cap(at CMP) 384 Cr.
Total DEBT on Books 719 Cr.
Other Liabilities 371 Cr
Fixed Assets (Net Block) 287 Cr.
Other Assets 1399 Cr
Cash in Hand in Books 83 Cr. – 22% of Mrkt Cap
Free Reserves 586 Cr.
EPS (Financial Year 2020-21) 6.18
P/E 13.53
P/E of Industry 35.26
P/C – Price/Cash generated per Share 11.52 - Very Positive
Book Value 143.47
Price / Book Value 0.58
Dividend 0%
ROCE 5.76%
Current Ratio 2.48
200 DMA 70.70
(All Data Taken from Annual Report and Moneycontrol.com)
Company Background: Marathon Nextgen Realty is 52 year old, Mumbai based
real estate development company that has completed over 80 projects in the city. It
is currently building several townships in the fastest growing neighborhoods,
affordable housing projects, ultra-luxury skyscrapers, small offices and large
business centers. Company’s projects are spread across the Mumbai Metropolitan
Region (MMR).

This above image is enough to understand the strength of this company. Company
has very strong roots in Mumbai City. In Mumbai City only Company has 4 Million
of Sq Ft land under Development which is a truly hefty. 880 Acres of Land being
planned by Company to be developed across MMR.
As its name suggests, Company is known for its advanced projects for New
Generation with new technologies. Marathon is well established player in its field in
Whole of Mumbai. Company does its operations through its 6 subsidiaries/Joint
Ventures which are mentioned as under:

Name of Firm Type of Company % of Shares held

by Marathon

Marathon Realty Pvt.Ltd. Subsidiary 74.96%

Marathon Nextgen Towns Subsidiary 100%

Terrapolis Assets Pvt Ltd Subsidiary 100%

Sanvo Resorts Pvt Ltd Subsidiary 91%

Swayam Realtors & Traders LLP Joint Venture 40%

Columbia Chrome India Pvt Ltd Joint Venture 40%

These above companies are Subsidiary or Joint Venture of Marathon Nextgen

Realty Ltd. These are also based in Mumbai. Marathon has its Tie up with Adani
Realty for construction of some luxurious projects which is truly an added
advantage for the Company. Company direct or through its above subsidiaries has
completed many projects and some of which are under construction.

Projects of Company: Company has completed almost 80 Projects in Mumbai

City and several projects are under construction. Here Below is the Completed
Projects of the Company:
Besides these Completed Projects Company having several Projects which are
undergoing and under construction. Some of these are as under:
These above Projects are the major projects of company. Along with these many
small and medium size constructions are also going on.

Shareholding Pattern: Shareholding pattern of the company is very Strong as

Promoters holds upto the maximum weightage allowed by SEBI in India
Companies. 74.97% shares are held by Promoters without any a single share
pledged. Promoters are very strong in this field and have vast experience in this
field. Besides this 1.96% are held with DII Investors and rest 23.08% of the equity
is with the retail and other holders. Below is the graphical presentation of the
shareholding pattern clearly explains the proportion of holding by each category:

23.08% Promoters

1.96%
DII Invetors

74.97%
Others

Price on NSE: Marathon Nextgen Realty is listed both on NSE and BSE with Code
on NSE-MARATHON and BSE-503101, but we always refer the prices of NSE
only. Stock is in strong uptrend and will hit our expected targets very soon. Due to
Overall weakness in market and Covid-19 Pandemic all stock’s prices were hit
badly down, but all quality stocks prices are now recovering rapidly. So as for
Marathon as it has recovered very soon from 52 week low made and now golden
period for this stock price to move upward are not much away now as Property
Development business is at upper boom. Stock is ready to fly in unchartered
terriority. Here below is the Weekly chart of the Stock which self explains that it is
available near its Very Strong Support of Rs.71.00/- which seems strong hurdle to
break down. All time high in this Stock is Rs.333/- which it hit in Jan,2018, just 3
year ago. Stock is available now at just Rs.83-84/- which is truly discounted against
its all time highs.
Technical Outlook: As above mentioned the fundamentals and future outlook of
the company is very good and favourable. Now lets talk about technical outlook of
its price movements. Here above Weekly chart of the company which clearly shows
that Company is trading on its upward journey. Rs.71.00/- is very very strong
Support which is not easy to be broken. It is trading well above it all short term
Moving averages of 9 and 21 dma, and also log term dma of 50, 100 and 200 dma.
RSI is also in trading well above 60 which is strong indicator. Besides this Volumes
of in traded hares prices are also very attractive form last 1 month along with its
delivery percentage. It seems that accumulations have been done in this stock from
last some days and from support levels Stock price of Marathon is now ready to fly
upside beyond the recent high price it touched in Dec,2020 which is Rs.107.95/-.

Financial Performance: Company is doing fairly well in terms of revenue and

profits thereto. Company is growing at very good pace and it is reflected in its
financial reports. Company is earning very good profits and even in period of
lockdown where World was facing huge obstacle to businesses, Marathon earned
Rs.6.18/- EPS and its Price to Earning Ratio is just 13.53 against Industries Ratio
of 35.26. Almost all sites of the company where projects are undergoing are
opened now and are on full swing. Soon more and more profits will come in books
when these Projects will be completed.

Key Positives(Abstract): As already mentioned Company is doing very great and

expected to perform more efficaciously in coming quarters. There are abstract of
some positive points which are very favourable Investment Rationale. Some of the
key positive points are mentioned here below:

1) With Huge Projects in Hand Company is trading at Market Capitalisation of

just 384 Crore where as its Peers are enjoying huge premium valuations than
Marathon. This gap cannot sustain for much time. Soon Re Rating is on
Cards. It cannot sustain at such cheap valuations for long time. It will hit
Multiple Upper Circuts.
2) Company is engaged in Construction and Development of Real Estates, and
demand of real estate is in front of us from last 1 year. Highest Registrations
of Properties are being recorded in last quarter in last 10 years which is very
favourable for Marathon.
3) Marathon have tied up with Adani Realty for construction of Luxury Projects
which is highly positive for Marathon.
4) Locality is surely an added advantage for Marathon as it is situated in the
Centre of Mumbai City, where it holds Prime Locations and Properties.
5) Marathon is a 69 year old Group and Company have very well recognized
Brand Name in its field. Moreover Management of the company has vast
experience in this field and they are doing very hard for the growth of
Marathon Nextgen Realty.
6) Company has brilliant engineers and construction team, which enabled it to
win many awards in different fields in its journey from 1969 to 2021.
7) Company having Rs.586 Crore Free Reserves against its Market
Capitalization of just 384 Crore which is truly lucrative.
8) Earning per share of the Company is Rs.6.18/- on consolidated basis, which
converts its P/E Ratio to 13.53 which is very low against its Industry P/E of
35.26. So one can imagine on how cheap valuations are company shares
available.
9) Shareholding Pattern of the Company is very strong as Promoter own holds
to the maximum capping determined by SEBI which is 75%, and no any
single share is pledged in any mean. This shows the confidence of the
promoters in the future of the company.
10) Technical Stock is above all its major Daily moving averages of 9, 21, 50,
100 and 200 Days. Stock is available near very strong support. It is poised to
cross its recent made high of Rs.107.95/- in Dec,2020 and to fly in
unchartered space.
Conclusion and View: We expect company to perform exceptionally well in
coming quarters and years. Company have very strong brand in this field and
management is leaving no stone unturned to improve the numbers of company and
to deliver the better results every quarter. Fundamentals of the company are really
great and favourable investment option. Now mentioning the Technical Parameters
of the Company, at CMP of Rs.83-84/-, shares of the company are trading well
above its 9, 21, 50, 100 and 200 DMA. Trading Volumes are also surging in last 1
Month. MACD and RSI above also indicate that Stock will be in big rally in coming
weeks and months.

Marathon Nextgen Realty Limited with its strong earning visibility, strong brand and
sound fundamentals, has huge potential to deliver very good returns on investment
in coming quarters. So at CMP of Rs.83-84/- is very lucrative. So it is prudent to
accumulate the Stock at cmp and on declines with maximum Portfolio allocation of
10% or Rs.40,000/- (whichever is lower) with Stop loss of Rs.60/-. On the upside
one can expect targets of 160/240/320/400+ in the holding period of 6-12 Months
holding period.