SGX: CY6U Capitaland India Trust Analysis
Disclosure: As of 07/12/2024 I have no open position in SGX: CY6U
Capitaland India Trust is a REIT (Real Estate Investment Trust) that invests in commercial real estate across India.
They invest in office, data center, and logistics properties. Their portfolio is diversified across 5 major cities in India. In order of exposure: Hyderabad, Bangalor, Chennai, Pune, and Mumbai.
One risk to be aware of is the currency fluctuations of INR to SGD as well as the currency in you home country may affect returns. The company is highly profitable and looks to have manageable debt positions. Their debt is based in both SGD and INR.
The largest tenant of CY6U is Tata Consultancy Services, making up a total of 12% of base rents. The next largest are Infosys and Amazon at 6% and 4% respectively.
The company has a strong record of performance both in terms of profitability and return on investment. Debt levels appear to be manageable and management very competent.
***Please Note: Debt to equity shown in the chart is out of date. Check most recent reports on CY6U investor relations for current debt levels***
The company is currently trading below book value and has a P/E of less than 10. With a dividend yield of 6% you have an earnings and dividend return of 15%. This is not including any potential growth the company may experience in its earnings or asset value.
Summary: Capitaland India Trust seems to be a quality company that is likely undervalued. Potentially due to the fact it is listed in Singapore as opposed to in India. Considering the growth in India buying this high quality assets below book value looks very appealing. I will update with further research and if I open a position.
Capitaland India Trust is a REIT (Real Estate Investment Trust) that invests in commercial real estate across India.
They invest in office, data center, and logistics properties. Their portfolio is diversified across 5 major cities in India. In order of exposure: Hyderabad, Bangalor, Chennai, Pune, and Mumbai.
One risk to be aware of is the currency fluctuations of INR to SGD as well as the currency in you home country may affect returns. The company is highly profitable and looks to have manageable debt positions. Their debt is based in both SGD and INR.
The largest tenant of CY6U is Tata Consultancy Services, making up a total of 12% of base rents. The next largest are Infosys and Amazon at 6% and 4% respectively.
The company has a strong record of performance both in terms of profitability and return on investment. Debt levels appear to be manageable and management very competent.
***Please Note: Debt to equity shown in the chart is out of date. Check most recent reports on CY6U investor relations for current debt levels***
The company is currently trading below book value and has a P/E of less than 10. With a dividend yield of 6% you have an earnings and dividend return of 15%. This is not including any potential growth the company may experience in its earnings or asset value.
Summary: Capitaland India Trust seems to be a quality company that is likely undervalued. Potentially due to the fact it is listed in Singapore as opposed to in India. Considering the growth in India buying this high quality assets below book value looks very appealing. I will update with further research and if I open a position.
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