Marathon Nextgen is in the business of real estate construction and sale. This is an 80-year old company with 2 nd generation management and has four projects running currently with 125cr committed to one project. The business model is largely focused on eventual sale of constructed properties. The company has reported somewhat erratic performance numbers as a result of its business model (see above). It reported 75cr of operating profits on total income of 130cr in the last financial year. However, it employed only moderate debt to accomplish this. The business is highly competitive and is primarily exposed to the interest rate cycle where customers are unwilling to pay up in a high interest rate/high EMI environment resulting in a real lack of pricing power under tight money conditions. The company was a BIFR case in 2003 as a result of unbearable debt burdens and accumulated losses. This is a major adverse factor against management competence. In addition
An Individual Investor's Perspectives On The Indian Financial Markets