• In the last 5 months or so, Thakral Corporation's stock has rallied hard -- up nearly 130% year-to-date -- and it's just caught another tailwind: its first sell-side analyst report. • The first boost was back in Feb 2025 when word got out that one of Thakral's investments is possibly seeking a London IPO (see: THAKRAL: Buzz around potential IPO of investee sends this stock up 10.5%). |
At a recent online 1Q results briefing. The Phillip Securities analyst, Darren Chan, who has just initiated coverage of Thakral is at the bottom right.
The rest (clockwise from top left): Torsten Stocker, Chief Operating Officer, Lifestyle Division | Anil Daryanani, CFO, | Inderbethal Singh, CEO
Excerpts from Phillip Securities report
Analyst: Darren Chan
| • With expanding retail operations in Greater China, a broader DJI product range in South Asia, continued growth in over-50s living through GemLife in Australia, and strategic investments in India (Bharat Skytech, Skylark Drones, and Nespresso), Thakral is well positioned to deliver long-term value and sustainable growth. While geopolitical risks persist, U.S. tariffs are not expected to impact the Group’s results materially. • In FY24, segmental profit from the Lifestyle segment surged 41% YoY, while the Investment segment, driven by GemLife, rose 49% YoY. GemLife’s momentum is expected to continue, supported by development profits from new home settlements and rising recurring revenue from growing site fee collections. • We initiate coverage on Thakral with a BUY recommendation and a target price of S$2.04, based on an 8.4x FY25e PE. Our valuation applies a 50% conglomerate discount to the 16.8x average PE of listed Australian land lease community operators. While Thakral’s historical PE (FY20–FY24) averaged 5.9x, we believe the higher multiple is justified by the strong growth trajectory of GemLife and the Group’s other expanding business segments. |
Key Investment Merits
• Accelerating growth in the Lifestyle business. In China, Thakral operates 31 beauty and fragrance stores, with plans to open 15–20 more over the next two years. This is supported by an expanded brand portfolio including Atelier Cologne, Miu Miu, Juliette Has a Gun, and Yue Sai.
In South Asia, the Group’s DJI drone distribution business continues to gain momentum, driven by broader product offerings and increasing adoption across sectors such as agriculture, construction, environmental monitoring, and media.
In FY24, the Lifestyle segment accounted for 36% of Group profit.
 • Exponential growth from GemLife. GemLife continues to scale rapidly, with a dual-income model through development profits and recurring site fees. In FY24, occupied homes rose 24% YoY to 1,804, driving strong growth in both revenue streams. By 1Q25, occupancy reached 1,862 homes, generating an estimated A$19.4mn in annual site fees (before accounting for Thakral’s 31.7% stake). With a long-term goal of 6,500 occupied homes by 2033, GemLife offers clear visibility into sustainable recurring income. In FY24, GemLife contributed to c.40% of Group profit. |
• New ventures fuelling future growth. The Group secured exclusive rights to distribute Nespresso products across India, launching an e-commerce platform in December 2024 and its first boutique in March 2025 at a prime Delhi mall.
Photo: Nestle Nespresso SA
Expansion plans include B2B sales to hotels, restaurants, and corporates. Additionally, the Group invested S$6.5mn for a 13.6% stake in a 21-acre healthcare and mixed-use development in Gurugram, a rapidly growing, affluent city near New Delhi.
Partnering with Platinum Securities and healthcare advisors, the Group aims to strategically develop this project, aligning with its long-term plan to capitalize on India’s demand for integrated urban developments and generate sustainable revenue.
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Dividend policy |
The full Phillip Securities report is here.
