­Experienced management and established track record of operations
DRPL was established by Mr. Nitin Patel in January 1998. The current promoters Mr. Nitin Patel and his son Mr. Divyanshu Patel have a vast experience in the similar line of business. Mr. Nitin Patel has experience of more than 2 decades in the field of housing construction and residential complexes. The company has till date developed more than 12 Lakh sqft area and completed over 15 projects within Mumbai Suburban area including Andheri, Kandivali, Borivali, Dahisar, Mira Road, Wadala.
Currently, company has two projects having four saleable buildings. One project has two buildings (73 East and 19 North) and the second project has (Westwood and Westwood 2). Both the projects are in Kandivali West, Mumbai Maharashtra with area under developing residential and commercial spaces.
Acuite believes the established track record of the company and its extensive experience in developing both luxury and budget homes will help the company in catering to various class of customers.

Steady construction pace along with moderate sales and collection traction
DRPL has completed the construction of 19 North before the scheduled time (June 2025) and Occupancy Certificate is received for the same. Sales and collection traction has been steady with ~93.28% area sold as of October 2024. 73 East construction is ongoing; however, sales traction has been nominal in this project with ~47.98% of the area sold. The other project having Westwood and Westwood 2 is in the stage of construction and is to be completed by Dec 2025 and Dec 2027 respectively. As of September 2024, around ~19.38% of the project cost has been incurred and ~14.27% of the saleable area has been sold.
Acuite believes that healthy sales traction in 73 East, and steady pace of construction for Westwood and Westwood 2 along with adequate sales and collection traction will remain a key monitorable.

­Project Execution Risk
DRPL’s recently launched –projects Westwood and Westwood 2. The estimated cost for them is Rs. 440.55 Cr, out of which Rs.85.38 Cr. has been incurred as of September 2024 (Rs.45.05 Cr. funded through promoter’s contribution, Rs.40.33 Cr. through customer advances). The balance project cost is to be incurred through Rs.59.95 Cr. of promoter’s contribution, Rs.150 Cr. term-loan and the rest through customer advances. Considering that Westwood-2 construction will start after completion of Westwood, execution risk is moderately high. 73 East construction is ongoing, part Occupancy Certificate for commercial is received. Any volatility in the sales and collection traction for the ongoing projects would adversely impact the completion of the towers as around 50% of the projects cost is dependent on timely receipt of projected customer advances in Westwood project.

However, considering past execution track record of the company, prime location of the projects and moderate sales and collection traction, the risk is mitigated to certain extent.

­Susceptibility to real estate cyclicality and regulatory risks
The real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Given the high level of financial leverage, the high cost of borrowing prevents the real estate's developers' from significantly reducing prices to boost sales growth. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus operating growth of real estate players.