This smallcap realty stock surges 50% in 5 sessions, 480% in one year
Shares of Ganesh Housing Corporation, a real estate developer, continued its gaining streak on Wednesday, hitting a record high in an otherwise weak market. The stock price of the Gujarat-based realty company rallied 15.72% in intraday trade to touch an over 13-year high of ₹298.10 on the BSE. In comparison, the S&P BSE Sensex was trading 272 points or 0.47% lower at 57,716 at the time of reporting.
Ganesh Housing Corporation Ltd (GHCL) shares have gained 50% in the past one week and 52% over a month after Brickwork Ratings upgraded the ratings of bank loan facilities of the company. The stock has rallied 80% in the last six months and 31% since the beginning of the calendar year 2022. In the long-term horizon, the stock delivered 243% returns in 3 years and 278% in 5 years. The stock has zoomed 480% in the past one year, from its 52-week low of ₹51.3 touched on March 31, 2021.
On Wednesday, GHCL shares opened higher for the fifth straight session and rose as much as 15.72% to hit a fresh high of ₹298.10 on the BSE. On the volume front, there was surge in buying activities as 0.75 lakh shares worth ₹2.13 crore changed hands on the BSE as compared to 0.13 lakh stocks.
The smallcap stock traded higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, while market capitalisation rose to ₹2,376.95 crore.
On March 3, 2022, domestic brokerage firm Brickwork had upgraded the ratings of bank loan facilities of Ganesh Housing Corporation by 3 notches from BWR B- to BWR BB-. The rating agency had also revised the outlook from 'negative' to 'stable', citing improvement in financial performance and a significant reduction in debt.
“Brickwork's observations, inter-alia, state that the upgrade in the rating reflects improved financials, a significant reduction in debt, improved leverage metrics, cash inflow receipts from sales of land parcels, improved cash flows as the company has already received customer advances of ₹72 crore from the running projects, and monetisation of the land bank resulted in a reduction in debt indeed resulting in improved gearing ratio,” Ganesh Housing had said in a filing to the BSE.
During the October-December quarter of 2021, the company reported solid earnings, with consolidated net profit surging to ₹24.77 crore as against net loss of ₹35.08 crore in the same period last year. The real estate firm had posted consolidated net profit of ₹15.23 crore in September quarter of 2021 (Q2 FY22). The consolidated total income rose 12% year-on-year to ₹76.05 crore in Q3 FY22, from ₹67.77 crore in the previous corresponding period and ₹73.90 crore in Q2 FY22.
For the first nine months of the current fiscal, Ganesh Housing posted consolidated net profit of ₹45.39 crore against loss of ₹104.72 crore in the year-ago period. The total income grew nearly three-fold to ₹229.25 crore, from ₹83.28 crore in the 9-month period ended December 31, 2020.
Ganesh Housing Corporation is engaged in construction of residential and commercial projects and is one of the oldest and largest real estate development company in Ahmedabad. It was established in 1991 and is promoted by Shekhar Patel and his family. As per the latest shareholding pattern available on the BSE, promoters and promoters group hold 73.06% stake in the company, while public shareholders own 26.94% shares in the company.