GemLife&rsquo s recent ASX debut unlocks value and balance-sheet headroom for Thakral even as it scales its other segments

 

Thakral&rsquo s next act is playing out across multiple engines of growth, with the July listing of GemLife Communities Group in Australia giving the group a fresh lift in earnings power and balance sheet strength while its businesses in drones, beauty and India gather pace.

 

CEO and executive director Inderbethal Singh Thakral frames the GemLife initial public offering (IPO) as a springboard rather than an exit. &ldquo We didn&rsquo t sell a single share into the IPO &hellip We think this is just the start of a new journey for us because the new journey is more exciting than it ever was for the last nine years,&rdquo he says. Nevertheless, the group&rsquo s shares in GemLife were diluted post-IPO to 16.8% from 31.7%.

 

Through the IPO, GemLife has successfully raised A$750 million ($624.5 million) from the 180.28 million stapled securities offered at A$4.16 each, making it Australia&rsquo s biggest IPO this year. As of Sept 10, shares of GemLife have gained about 8.7% to A$4.52 when it first listed.

 

The listing equips GemLife with funding to take in more projects and reduce gearing. &ldquo From GemLife&rsquo s perspective, this couldn&rsquo t be a better time [for a listing],&rdquo says Inderbethal, adding that with the IPO, GemLife now has a hefty war chest.

 

GemLife plans to deploy proceeds from the IPO to support its ongoing growth, including the acquisition of the Aliria Group portfolio, which is expected to increase its pipeline from approximately 6,500 homes to 9,913 homes.

 

With the IPO funds, GemLife is also able to reduce its debt, strengthen its balance sheet, and use the funds as additional working capital. Its debt levels are currently below 30%. &ldquo That puts us in a nice position to go forward,&rdquo says Inderbethal, adding that GemLife has got its &ldquo game on&rdquo mode and he is upbeat on the prospects.

 

From Thakral&rsquo s perspective, Inderbethal views the IPO as an &ldquo excellent endorsement&rdquo , as it demonstrates that the group&rsquo s investment has been successful. Today, Inderbethal&rsquo s son Ashmit Singh Thakral is the CFO of GemLife.

 

Hidden gem

 

GemLife&rsquo s listing arms the luxury over-50s resort community operator with capital to activate more sites and lower leverage, while giving Thakral a liquid mark-to-market earnings lever.

 

Analysts are upbeat on GemLife and are initiating coverage of the stock.

 

JP Morgan initiated the counter with a &ldquo buy&rdquo call and a target price of A$5.25. GemLife is Australia&rsquo s fourth-largest Land Lease Community (LLC) operator, with the largest pipeline of yet-to-be developed vacant land.

 

The way analyst Liam Schofield sees it, &ldquo with a market-leading position and strong sector tailwinds, GemLife is well-positioned to grow, capitalising on its substantial development pipeline.&rdquo

 

Schofield shares in his Aug 18 report that his positive sentiments on GemLife are backed by industry tailwinds combined with the company&rsquo s quality operational metrics. &ldquo Australia&rsquo s LLC sector benefits from strong demographic tailwinds, structural housing affordability pressures and government-backed rental support, creating a resilient and scalable environment for operators like GemLife,&rdquo he says.

 

Meanwhile, the business has forecast 408 lot settlements in the 12 months to June 2026, a production rate Schofield expects can grow through time as GemLife builds out its pipeline of 8,000 development sites. Given that the business generates a profit from the sale of its dwellings, in addition to the retained value of the underlying land (rent from its growing portfolio of established communities), the business is well-positioned to continue funding its growth ambitions from retained earnings.

 

GemLife&rsquo s pro forma gearing of 24% reflects a conservative balance sheet. While new developments will likely draw on available debt capacity, the business appears capable of funding its growth without requiring additional capital. The dividend, while initially modest, is expected to grow as the company builds out the recurring income from stabilised assets.

 

Schofield says: &ldquo GemLife offers exposure to a structurally attractive sector underpinned by ageing demographics, affordability pressures and government-backed rental support. The business model is high quality, combining vertical integration, strong margins, and recurring income from site rents. At the same time, the financially aligned management team brings sector expertise and a proven track record.&rdquo

 

Morgan Stanley, too, has similar sentiments, as it has initiated its coverage on GemLife with an &ldquo overweight&rdquo rating and A$5.35 price target.

 

GemLife Maroochy Quays Summerhouse

 

Analysts Lauren Berry and Simon Chan estimate that GemLife can deliver about 13% EPS CAGR over 2026&ndash 2028. &ldquo GemLife is an ideal stock as we head into a period of uplift in housing purchasing power and with the bulk of its earnings derived from the sale of home builds, GemLife offers investors direct exposure to positive momentum in the residential market.&rdquo

 

Peers with residential exposure have seen their P/E multiples expand to about 20 to 30 times in previous residential upcycles directionally, the Morgan Stanley analysts think GemLife can capture similar tailwinds.

 

Berry and Chan like GemLife&rsquo s &ldquo attractive business model&rdquo . While a typical developer of communities only derives profit upon sale of land, land lease differs in that GemLife retains full ownership of the land, collects rent from site fees (yield of 4.5%&ndash 6.5%), plus earns profits on the home builds (about 50% margin), with other costs capitalised. Projects then become cash generative within two to three years, meaning GemLife can self-fund the activation of new projects, which underpin Morgan Stanley&rsquo s 13% lot settlement CAGR over 2025&ndash 2028.

 

The analysts estimate that GemLife is trading at 18.1 times its FY2026 forward P/E, which is above its peers, which are trading at approximately 15&ndash 17 times their P/E. However, they think this premium is justified at a time when the residential market in Australia is seeing a positive momentum, underpinned by rate cuts and an upward house price trajectory.

 

Reinventing the playbook

 

Similarly, shares of Thakral are trading at $1.53, representing a 135.4% increase since the start of the year.

 

To recap, Thakral reported earnings of $109.3 million for 1HFY2025 ended June 30, a surge from the $10.8 million reported in the same period a year ago due to the gain on fair valuation of GemLife&rsquo s IPO. The group&rsquo s revenue for 1HFY2025 grew 25% y-o-y to $160.5 million, while gross profit rose 19.2% y-o-y to $26.8 million.

 

The board has declared an interim dividend of 2 cents per share for the reporting period. A special interim dividend of 1 cent per share has been declared in connection with the listing of GemLife on ASX.

 

For the longest time, Thakral&rsquo s stock has suffered from a conglomerate discount. Apart from its stake in GemLife, the group is also in the business of drones &mdash distributing and supplying components to manufacturers, distribution of beauty products and fragrances, as well as property investment. These businesses span multiple markets, including Hong Kong, China, Japan and India.

 

Inderbethal shares that, before the GemLife IPO, the group reported a return on equity of 18.4%. This has since increased significantly following the GemLife IPO, although it is reported as a one-off gain.

 

&ldquo We are not really a conglomerate. We are a really detailed business,&rdquo says Inderbethal, adding that the management team are also very &ldquo hands-on&rdquo . While Inderbethal admits that the market is better understanding of the group&rsquo s business, due to its increased communication efforts, Inderbethal still believes that the group is trading at a discount.

 

This could be a positive development, as the Singapore government invests funds to boost the stock market through the Equity Development Programme or EQDP. While updates on the $1.1 billion worth of funds to be deployed by the Monetary Authority of Singapore to three asset managers &mdash Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management &mdash to invest in local stocks have been scarce, CGS International (CGSI) believes that Thakral stands a chance to benefit from a piece of this pie.

 

The way CGSI sees it, Thakral&rsquo s momentum and trend are showing strong and continuous upside potential after it has formed a potential bullish flag formation. Despite overbought conditions, bearish reversal is kept to a minimum, which indicates strong bullish pressure.

 

CGSI is eyeing a long-term target price of $2.00 and thinks that major support at $1.30 will be a good level to &ldquo accumulate&rdquo , should there be any correction.

 

Similar opportunities

 

Soon, Thakral may have a second IPO catalyst on the horizon through its stake in UK-based The Beauty Tech Group, which owns CurrentBody, Ziip and Tria. Thakral holds an effective 9.4% interest through Project Glow Topco. The media have reported a potential London listing, and while the group previously stated it is unable to comment on valuation, Inderbethal signals that preparations are moving along. &ldquo The team there will be making their final decisions,&rdquo he says.

 

On Sept 8, Project Glow Topco announced that it was mulling over the listing of The Beauty Tech Group and intends to publish a registration document and apply for admission of its ordinary shares for trading on the main market of the London Stock Exchange.

 

While the group has yet to receive any information on the valuation or potential valuation, media sources have reported that the listing could value The Beauty Tech Group at GBP350 million ($590.7 million). Thakral reported that the total carrying value of the investment (including receivables) is $17.1 million as at Dec 31, 2024.

 

If Thakral proceeds with the float, the group would gain a second liquid asset with earnings sensitivity similar to GemLife&rsquo s mark-to-market effect. Inderbethal says the investee will be better placed to pursue its plans once listed. After the listing, Thakral &ldquo will support them in whatever way possible&rdquo through its network and operating experience. On the group&rsquo s stake in The Beauty Tech Group, Inderbethal keeps his options open: &ldquo We&rsquo ll go along with the majority &hellip we are happy to stay or happy to exit partly&rdquo . However, there are no plans to divest Thakral&rsquo s stake in the beauty company completely.

 

CurrentBody&rsquo s profile has risen with demand for at-home beauty devices, led by its LED masks and complementary skincare tools. A listing would provide capital for category expansion and global roll-out while giving Thakral clearer price discovery on a portfolio asset that today sits on its books at carrying value. It would also diversify Thakral&rsquo s sources of distributable returns beyond seniors living and drones.

 

While Thakral awaits news on the potential IPO, it will continue to be the distributor for The Beauty Tech Group&rsquo s CurrentBody products in China, as Inderbethal shared that the group is seeing some recovery in consumer spending. &ldquo The Chinese economy looks like it has bottomed out. Hopefully, it will start to move up,&rdquo says Inderbethal.

 

Additionally, the group is exploring other markets beyond Australia to replicate GemLife&rsquo s model of lifestyle communities for the over-50s. Inderbethal is cautious about execution due to cultural differences outside of the continent. He shares that the group is currently researching and studying the feasibility of a similar model, but declines to pinpoint a specific market. However, he has hinted at the possibility of an expansion in the property market in Japan.

 

&ldquo We continue to study these markets around us &hellip so far, I think no one has cracked that because the cultures are so different &hellip it has to be a modified version,&rdquo he says.

 

Any move would follow the same partner-led approach used in Australia. Thakral would seek local expertise, test product-market fit and pace capital to milestones. For now, the group is keeping its options open while building a pipeline of possible sites and formats and refining a variant that fits local regulations and consumer preferences.

 

Aerial growth

 

On the other hand, Thakral&rsquo s drone business leverages the same distribution network it established in the 1980s. Inderbethal joined the family firm in 1975, and by the 1980s, the group had begun distributing consumer electronics in China &mdash initially VCRs, then VCDs and DVDs &mdash before streaming technology eventually displaced physical media. Fortunately, the channel, supplier relationships and dealer base survived each shift. About a decade ago, the team used that base to move into drones, first through photographers and videographers upgrading from digital cameras, then into agriculture and enterprise work.

 

Today, Thakral is a regional distributor for DJI, the Shenzhen-based drone market leader, across South Asia. The group covers seven countries in South Asia, including India, Nepal, Sri Lanka, Bangladesh, Pakistan, Bhutan and Maldives, with growing demand from enterprises in mapping, inspection, security and farming. However, due to import restrictions in India, the direct distribution of foreign-made drones is prohibited, so DJI only distributes its AV products. Thakral has also pivoted to software and components, supplying local manufacturers with these components and investing in enterprise applications to stay close to profitable markets.

 

Demand across the region is firm. &ldquo We see an almost 30% growth y-o-y for the past three years,&rdquo says Inderbethal, referring to the group drone business that has shown both topline and bottomline growth. &ldquo We don&rsquo t have much increment in our cost structure for this business,&rdquo he adds.

 

India&rsquo s policy has shaped a different strategy. &ldquo Our growth will be a lot stronger if it weren&rsquo t for the fact that India doesn&rsquo t allow drones to come in fully,&rdquo says Inderbethal. Hence, this has led Thakral to invest in Skylark Drones, in which the group owns a 23% stake, to explore the possibilities of manufacturing enterprise drones in India.

 

To bridge the logistics gap, the group has established a local operation with a focus on supply chain management. Its 100%-owned subsidiary Bharat Skytech focuses on distributing drone components to drone manufacturers in India.

 

The emphasis is on systems, not just airframes. DJI&rsquo s breadth &mdash from DJI Agras&rsquo agricultural models to mapping and inspection platforms, gimbals and action cameras &mdash lets Thakral sell bundles to government agencies and enterprises in Sri Lanka, Bangladesh and Nepal. In contrast, the India model focuses on enabling the local ecosystem. This also includes analytics. Thakral is a shareholder in Skylark Drones, which develops software that converts aerial data into actionable maps for mining, infrastructure and agriculture, generating revenue from services alongside hardware sales.

 

Operationally, the playbook mirrors the group&rsquo s legacy distribution business, cultivating specialist dealers, training end-users and expanding the addressable market through applications. Government support programmes for agriculture in Sri Lanka, Bangladesh and Nepal have helped adoption. In India, policy has pushed innovation upstream &mdash from importing finished drones to supplying the value chain and building data services.

 

Caffeine-driven push

 

India is currently closed to foreign-made drones, so Thakral is leaning into premium retail, where it can control the route to market in the subcontinent. The group is the exclusive distributor for Nespresso across India, running both consumer and enterprise channels.

 

&ldquo We&rsquo re now basically on a smooth road going forward,&rdquo says Inderbethal, adding that the group already launched one physical store in March and is looking to open another two this year, with two more physical outlets every year moving forward. Inderbethal expects this business segment to turn profitable in the next two years.

 

The commercial plan is simple and scalable. On one hand, Inderbethal explains that the group has launched an e-commerce website and is also partnering with large online marketplaces, such as Amazon. On the other hand, the group is also increasing the physical presence of the brand by selling through its own boutique.

 

&ldquo Once they buy the machine, the coffee pods are sold mostly through our direct online channel and the boutiques,&rdquo says Inderbethal. This ensures brand loyalty and product stickiness with consumers.

 

Enterprise sales are underway, too, although hotel and office orders follow budget cycles that &ldquo take six months to nine months&rdquo to approve. Early traction is visible, as Interbethal says, &ldquo JW Marriott and Fairmont hotels have already put our coffee machines in every one of their hotel room &hellip and then the large machines for F& B areas.&rdquo

 

Brand recognition is strong for the Swiss coffee brand, even as it is just entering the market. Inderbethal shares that before Thakral brought Nespresso to India, consumers and businesses were purchasing the Nespresso machines from other markets. This meant different electrical plug points, which could spoil the machine, and the lack of after-sales support.

 

The expansion of Nespresso in India aligns with Thakral&rsquo s beauty segment, enabling the transfer of retail expertise across categories. In contrast, Nespresso may be the first and only brand under its belt for now, although Inderbethal shares that the group will be exploring bringing other brands into India&rsquo s consumer market.

 

New Gurugram dreams

 

India&rsquo s appeal is clear to Thakral. Inderbethal, who shares that Gurugram sits at the centre of the story. It is &ldquo the richest area&rdquo , with about 400 Fortune 500 companies represented and most of the office leasing in Delhi is concentrated in the National Capital Region (NCR).

 

Thakral partially owns a 20.7-acre site, which is in &ldquo the centre of New Gurugram&rdquo and is located about 23 minutes from Indira Gandhi International Airport. Inderbethal shares that his father, together with some family members, purchased this piece of land some 30 years ago. &ldquo My father&rsquo s selection of properties has always been excellent &hellip location must be excellent,&rdquo says Inderbethal.

 

While the group owns a 13.6% stake in the Gurugram land, which is majority owned by TIL Investments, Inderbethal says Thakral will be able to unlock value from this land by developing a mixed-use project, including a hospital and residential properties. The group has invested about $6.37 million in the development.

 

This megaproject marks the group&rsquo s foray into the healthcare and real estate sectors in India. The group&rsquo s financial advisor, Platinum Securities Company Limited, Singapore, will also invest approximately $2.2 million for a 4.72% post-issuance stake. The land has a development potential of over 2 million sq ft.

 

Inderbethal says the hospital construction will &ldquo close a catchment gap&rdquo as existing hospitals are at least about 10km away. The group intends to build a hospital with space for 900 beds, alongside a medical centre with clinics, retail and F& B offerings. There are also plans to build serviced apartments to complete the ecosystem.

 

&ldquo We have allocated seven acres of land to be designated as a healthcare hub,&rdquo Inderbethal says. The medical centre will be developed in-house to be leased out. For the hospital, Inderbethal says that &ldquo we are talking to all the major operators&rdquo and prefers a model where &ldquo the operator builds the hospital&rdquo . Thakral will receive a share of long-term revenue as part of its de-risking strategy and to avoid construction debt. If the operator prefers not to build, &ldquo we&rsquo ll find a third-party developer to come in and fulfil that part,&rdquo while Thakral still participates via revenue share.

 

The residential portion will then provide cash flow while the hospital grows in scale. Similarly, Thakral prefers joint development with a tier-one developer, which will provide the construction capital and assume the development risk, with Thakral participating in revenue sharing. The product mix is being refined, with a focus on sustainability standards and community value. &ldquo We don&rsquo t want to do a project for the sake of doing it. We want a project that adds value,&rdquo says Inderbethal.

 

The company is also considering consolidating ownership. Inderbethal has expressed interest in acquiring a larger stake in the land. With the land sitting amid high-end launches and infrastructure, Inderbethal frames the project as multi-year value creation. Over time, the group sees &ldquo a lot of value to unlock&rdquo , with potentially about $700 million to $1 billion in attributable value over about 15 years, subject to execution and market conditions.

 

&ldquo Our investment in this project aligns with our strategy of identifying attractive real estate ventures and tapping into sectors with strong growth prospects. The investment also diversifies the group&rsquo s global footprint while proactively entering one of the fastest-growing sectors in a fast-growing and promising economy,&rdquo says Inderbethal. In his view, this venture will enable the group to mitigate market volatility across all sectors and ultimately enhance overall stability and resilience in the long-term future.

 

As Thakral solidifies and expands its presence in India, it has also begun investing in a venture capital fund there. The group&rsquo s wholly-owned subsidiary, Paramount Investments, is subscribing to unlisted units in the Riverwalk Fund II for an investment amount of INR425 million ($6.3 million).

 

Thakral will make a capital commitment of about INR420 million and directly subscribe for unlisted Class B units in the Riverwalk Fund II. This India-domiciled fund has been registered with the Securities and Exchange Board of India. It will invest INR5 million in cash to acquire a 10% interest in Riverwalk Investment Manager LLP, the sponsor and investment manager of the fund.

 

Riverwalk Fund invests in the securities of fast-growing companies to create a highly-qualified diversified portfolio in B2B software solutions & services, fintech, consumer brand & consumer platforms, and application of technology to traditional industries like real estate, among others.

 

Inderbethal shares that India presents a compelling investment landscape driven by several factors, including a growing working-age population, rising per capita income, fiscal discipline and favourable global trends such as the &ldquo China+1&rdquo strategy. The joining of Riverwalk&rsquo s fund allows the group a broader view of the market and an opportunity to participate in these growth sectors.

 

Additionally, Inderbethal himself is involved in the fund, as he frequently meets with founders to discuss their business strategies. Sometimes, even introducing such strategies in Thakral&rsquo s business framework.

 

&ldquo The team that runs the Riverwalk Fund is very dynamic and young. When I talk to the founder, it feels like a breath of fresh air I feel younger. Maybe that is one of the reasons why I love the meetings every time I go there,&rdquo he shares, adding that this is Riverwalk&rsquo s third fund and it typically invests in Series A and B companies.

 

The road ahead

 

Thakral&rsquo s next phase involves compounding returns from multiple engines while maintaining a tight control on risk. GemLife is now a listed, self-funding growth driver with a clear earnings link back to the group via fair-value marks and distributions. A potential London float of The Beauty Tech Group would add a second listed vector.

 

In India, Nespresso is widening its consumer footprint and the group is unlocking real estate value in Gurugram. The drone business continues to scale across South Asia, while in Japan, the group is selective on recycling assets and evaluating new opportunities.

 

While the group is focused on expansion in all its markets, Inderbethal shares that he &ldquo keeps the risk factors very much in check&rdquo and will continue to look for ways to de-risk projects that the group undertakes.

 

The philosophy that took Thakral from tapes to tech remains intact: identify durable trends, build with partners and keep optionality. As Inderbethal puts it, the portfolio today is &ldquo comfortably underpinned by very strong businesses&rdquo , with funding and platforms in place to take the next steps.

Thakral Corporation has reported earnings of $109.3 million for the 1HFY2025 ended June 30, a surge from the $10.8 mil reported in the same period a year ago due to the gain on fair valuation of GemLife&rsquo s IPO.

 

The group&rsquo s revenue for the 1HFY2025 grew 25% y-o-y to $160.5 million, and gross profit grew 19.2% y-o-y to $26.8 million.

 

However, for the period, gross margin declined 0.8 percentage points (ppts) due to revenue/product mix, while operating margin declined 0.9 ppts.

 

The group&rsquo s lifestyle business saw revenue grow due to strong continued demand in China for the group&rsquo s beauty and fragrance products.

 

The group saw continued momentum for its DJI expanded range which includes drones, gimbals, action cameras and accessories.

 

In addition, the group inaugurated India&rsquo s first Nespresso boutique at Select Citywalk in New Delhi earlier this year, marking a significant step in the brand&rsquo s entry into this market.

 

On July 3, GemLife Communities Group successfully launched its IPO on the Australian Securities Exchange (ASX) raising A$750 million with a market capitalization of approximately A$1.58 billion, making it the largest IPO in Australia so far in 2025.

 

Subsequent to the IPO, Thakral&rsquo s stake in GemLife was diluted from 31.7% to 16.8%.

 

Thakral has reclassified its investment in GemLife from &lsquo associate&rsquo to &lsquo financial assets measured at fair value through income statement&rsquo , and will now revalue the holding in GemLife at market price at each reporting date.

 

The group has retained a seat on GemLife&rsquo s board and recognised a one-off unrealised valuation gain of $102.4 million net of related costs, one-off management and employee awards as well as tax, based on the IPO price of A$4.16 per stapled securities.

 

Finally, in its Japan properties segment, Thakral has reported an average occupancy across its six commercial buildings in Osaka at 98%, leading to &ldquo stable profits&rdquo .

 

The board has declared an interim dividend of 2 cents per share for the reporting period. A special interim dividend of 1 cent per share has been declared in relation to the listing of GemLife on ASX. The total dividend declared translates to an annualised dividend yield of 3.6% based on the closing share price on June 30.