Mehabe score: 6 G Factor: 4 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 4.
Description
Ganesh Housing Corporation is engaged in the business of business of construction of Residential, commercial and infrastructure projects.Site:GANESHHOUCMain Symbol:GANESHHOUC
Stock trades at 218.0, above its 50dma 139.21. It also trades above its 200dma 92.87. The stock remains bullish on techicals
The 52 week high is at 184.10 and the 52week low is at 23.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
-Promoter holding has increased by 2.17% over last quarter.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.13% over past five years.
– has a low return on equity of -9.59% for last 3 years.
-Earnings include an other income of Rs.10.58 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 36.5x. Macrotech Devel. trades at the industry’s max P/E of 613.87x. GANESHHOUC trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. GANESHHOUC has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 19.1%. The max 1- month return was given by National Standar: a return of 86.21 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 73.0 cr compared to Rs 14.0 cr for period ended Sep 2020, a rise of 421.4%
Company reported operating profit of Rs 29.0 cr for period ended Sep 2021, operating profit margin at 39.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 2.95 compared to Rs 1.04 for previous quarter ended Jun 2021 and Rs -4.84 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 309.0 cr for period ended TTM vis-vis sales of Rs 168.0 cr for the period ended Mar 2021, a healthy growth of 45.6%. The 3 year sales cagr stood at 6.2%.
Operating margins expanded to 16.0% for period ended TTM vis-vis -29.0% for period ended Mar 2021, expansion of 4500.0 bps.
Net Profit reported at Rs -15.0 cr for period ended TTM vis-vis sales of Rs -105.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 132.0 cr for period ended Mar 2021 vis-vis Rs 123.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -19.0% compared to -10.0% over the last 3 Years. – The stock has given a return of 739% on a 1 Year basis vis-vis a return of 47% over the last 3 Years. – The compounded sales growth on a TTM bassis is 58% vis-vis a compounded sales growth of -30% over the last 3 Years. – The compounded profit growth on a TTM basis is 58% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.97% vis-vis 1.04% for Mar 2021 – Public shareholding has fallen for the period ended Jun 2021. The Jun 2021 public holding stood at 42.49% vis-vis 44.59% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter
-Promoter holding has increased by 2.17% over last quarter. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.13% over past five years.
– has a low return on equity of -9.59% for last 3 years.
-Earnings include an other income of Rs.10.58 Cr.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 139.21 and is trading at 218.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
