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| CMP - 134 |
Ganesh Housing Corporation (GHCL) incorporated in 1991, it is engaged in the business of construction and real estate development. 'Ganesh Housing' is a strong brand and established itself as one of the largest and prominent real estate developers in Gujarat. Traditionally GHCL has purely focussed on the development of residential projects but later diversified into the commercial, retail and township format of the industry.
GHCL has built a strong presence in and around Ahmedabad with a focus on the mid and higher income segment of the market. It has developed and sold over 22.47 million sq.ft. of real estate space, with another 2.55 million sq.ft. currently under development. GHCL has one of the largest developable land bank in the city, with more than 50 million sq.ft. of space, containing a possible development area of 100 million sq.ft.
https://www.youtube.com/user/GaneshHousingCorp/videos
Ganesh Housing was the first construction company to get an ISO 9001:2000 certification for its construction methodology and quality work in Gujarat, and among very few reputed national real estate companies.
GHCL has received ISO 9001-2008, ISO 14001 : 2004 & OHSAS 18001 : 2007 certification for its quality, environment and safety management.
Residential Business
GHCL’s residential projects consist of multi-storied apartment complexes and integrated townships which have a blend of residential and commercial space.
Malabar County
Maple Tree Garden Homes
Commercial Business
Ahmedabad is the commercial hub of the state and one of the major industrial locations of the country. Company has developed the space based on the concept of individual corporate houses.
Maple Trade Centre
Investment Rationale
Macro-economic Factors
India has emerged as one of the world’s fastest growing major economies. The overall macro-economic scenario in the country is very positive with low inflation, reduced key interest rates, low commodity prices, rising foreign investments and improved global confidence in the region. Different structural reforms and government initiatives have led to revival of growth across all the sectors. A combination of all these factors is likely to boost the construction sector in the country.
Real estate sector in India is expected to reach a market size of US$ 180 billion by 2020. More than 70 per cent of India’s GDP will be contributed by the urban areas by 2020 and FDI in the sector is estimated to grow to US$ 25 billion by FY22
Rapid urbanisation is good for the sector and it is creating ever growing demand. Demand for residential properties has surged due to increased urbanisation and rising household income. India is among the top 10 price appreciating housing markets internationally. About 10 million people migrate to cities every year and 35 % of the population is in young age bracket (15-35 years). Growing economy driving demand for commercial and retail space. With all this, the housing sector is expected to boom and its share in GDP expected to rise from 6.3% in 2013 to 11% by 2020.
For further details need to refer below recent report on real estate sector.
https://www.ibef.org/download/Real-Estate-March-2018.pdf
Government Initiatives
The government of India came up with two major projects that are likely to enhance the real estate demand in the country. The first being creation of 100 smart cities and second is ‘Housing for all’ project. Government of India’s 'Housing for All' initiative is expected to bring US$ 1.3 trillion investments in the housing sector by 2025. Under this scheme, 60 million houses are to be built which include 40 million in rural areas and 20 million in urban area by 2022.
Real Estate Bill was passed to establish a real estate regulatory authority (RERA) for regulating and promoting the sector. The government has already taken several below steps to boost the real estate sector
• Real Estate Regulatory Act • Benami Transactions Act • Boost to affordable housing construction • Interest subsidy to home buyers • Change in arbitration norms • Service tax exemption • Dividend Distribution Tax (DDT) exemption • Goods and Services Tax • Demonetisation • PR for foreign investors
The introduction of RERA has enabled the greater transparency and ensures that the interests of all interested parties and in particular the consumer, are protected. It ensures a consistent metric of measurement and puts in place requisite timelines. The builder also has to provide an affidavit declaring that the land has clear title and is free from any encumbrances. All these initiatives if implemented well will go a great way towards enhancing the credibility of the segment.
Future Prospectus of Company
GHCL has the largest developable land bank in strategic locations of Ahmedabad and it has an in-house research and development team to ensure deployment of the latest technology in construction. Huge low- cost land bank gives fair visibility of very good growth potential of business for next 8 -10 years. Low-cost land of this company gives it one of the best operating profit margin in housing sector and it is big cost saving advantage to the company over other competitors.
GHCL is known for quality developments with good track record. It is a pioneer in using earthquake resistant structures in Gujarat. Ganesh Housing was also at the forefront of bringing the SEZ (Special Economic Zone) format to Gujarat. It has several firsts to its credit like first earthquake-resistant housing project, smart homes with digital security, solar passive buildings, wi-fi enabled project etc.
All on going projects of Ganesh Housing are RERA approved. Ganesh Housing home buyer are qualified to get the subsidy under Pradhan Mantri Awas Yojana (PMAY)
http://www.ganeshhousing.com/wp-content/uploads/media-release/maple-tree/2017/06_GHCL_Double-Spread-for-GIHED%20Catelogue.jpg
http://www.ganeshhousing.com/wp-content/uploads/media-release/maple-tree/2017/07_Maple%20RERA_DB_25x16.pdf
The company’s land bank is concentrated around the city of Ahmedabad. Ahmedabad is evolving opportunity for housing sector. It is the fifth largest city in India and the seventh largest metropolitan area. Forbes magazine ranked Ahmedabad as the third fastest growing city of the decade. It is emerged as an important economic and industrial hub in India. Development of Sabarmati River Front is completed in the recent past and it is well known for best infrastructure and transport.
http://worldpopulationreview.com/world-cities/ahmedabad-population/
http://www.sabarmatiriverfront.com/
GHCL has completed several projects with Government of Gujarat for development of townships, IT park, Pharma and Biotech Park (SEZ) and there is possibility to get similar projects in future.
Conclusion
The outlook for the Indian economy is very positive. Several initiatives are taken by the government to boost the housing sector growth in the coming years. Housing shortage is a major concern in India due to the rapid pace of urbanization and real estate market of Ahmedabad offers tremendous potential in given situation. Ganesh Housing is best placed take the advantage of upcoming huge growth in the housing sector.
Ganesh Housing stock at cmp Rs 134 is one of the best investment opportunity in housing and real estate sector for both short term and long term ( 1 year to 4 years ). It can be bought + / - 10% from cmp with 10 -20% of portfolio allocation.
