Ganesh Housing increases 53% in five trading days; Hit more than 13 years

Shares of Ganesh Housing Corporation (GHCL) hit a 13-year high of Rs 298.10, up 16 per cent on the Bahrain Stock Exchange in Wednesday’s trading, in a range-bound market. At 11:46 a.m., the stock was 11 percent higher, compared to 0.03 percent in S&P BSE Sensex. The stock reached its highest level since June 2008.

The real estate stock is up 53 percent in the past five trading days. In comparison, the benchmark index rose 2.2 percent over the same period. Earlier, it had reached a record high of Rs 553 on January 4, 2008.

GHCL is involved in building residential and commercial projects in and around Ahmedabad. To date, the company, along with its Special Purpose Vehicles (SPVs), has developed 22 million square feet of projects with 85 percent of all development in the residential sector.

Currently, the company has two projects under construction: Malabar District 3 and Malabar Exotica. Apart from these, the company has more than 3 projects which are Malabar Luxuria, IT SEZ and Smile City which are expected to start in the 2023 financial year.

On March 3, 2022, Brickwork Ratings India Pvt. Ltd has upgraded the company’s bank loan facility ratings by 3 notches from BWR B- to BWR BB- and the outlook has been upgraded from ‘Negative’ to ‘Stable’.

Brickwork rating upgrade reflects improved financial, significant debt reduction, improved leverage metrics, cash flow receipts from plot sales, improved cash flow (the company has already received advances to clients of Rs 72 crore from ongoing projects), income generation in the real estate bank, Resulting in reducing debt and improving the debt ratio.

“The company has an ongoing project that enables the company to be at a stage where a number of its projects are always in an advanced stage of construction and two of them are in the nascent stage. This combination helps the company balance its cash flows more effectively,” Brickwork Ratings notes.

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