Ganesh Housing Corporation - Not Rated - Motilal Oswal

GANESH HOUSING 3QFY11: PAT down 69% YoY; Pre sales of ~0.5msf in 9MFY11

Ganesh Housing Corporation reported 6.3% YoY growth in revenues to Rs318m, while net profit de-grew 69% YoY to Rs61m.

EBITDA dropped 19% YoY to Rs178m, while EBITDA margins stood at 56%. The key reason for fall in EBITDA was one-time forex loss of Rs76.3m.

For 9MFY11, revenues stood at Rs1.1b (Rs619m in 9MFY10), EBITDA was up 39% YoY at Rs624m (Rs449m) while PAT stood at Rs321m (Rs311m).

GHCL sold projects of ~0.2msf in 3Q aggregating to Rs500m (average realization of ~Rs2,500/sf), sales for 9MFY11 stood at ~0.5msf aggregating to ~Rs1.2b.

Ahmedabad is emerging as one of the fastest growing commercial hubs in India and stands to benefit significantly from the ongoing industrial boom in Gujarat. The state boasts of 10%+ GDP growth rate, which is higher than the national average. GHCL is a good proxy to play the booming Ahmedabad market. The stock trades at 1.1x FY10 Book Value of Rs154/share and 11x FY10 EPS of Rs14.3/share. Not Rated.

Source : Equity Bulls

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