Good article! Why do you think Arkade is able to have such a high RoCE compared to others? Is it because it has a higher ratio of redevelopment projects which are contracts rather than requiring acquisition of land (and hence significant CE) while the remaining are mostly new development? Would be good to analyze ratio vs. peers.
Partly yes, redevelopment projects are more capital efficient. Arkade is having a fair share (33% of topline for FY24) + 5 upcoming redevelopment projects. Arkade is also quite efficient in new project execution.
Definitely will take a look at the ratio of peers. Good suggestion bud 💪
Good article! Why do you think Arkade is able to have such a high RoCE compared to others? Is it because it has a higher ratio of redevelopment projects which are contracts rather than requiring acquisition of land (and hence significant CE) while the remaining are mostly new development? Would be good to analyze ratio vs. peers.
Partly yes, redevelopment projects are more capital efficient. Arkade is having a fair share (33% of topline for FY24) + 5 upcoming redevelopment projects. Arkade is also quite efficient in new project execution.
Definitely will take a look at the ratio of peers. Good suggestion bud 💪
Wonderful piece of research, Siddharth.
Thanks a lot Sreejesh, means a lot :)