Saturday, 10 October 2015

Ashiana Housing

What does the business do?

  • Ashiana Housing Limited (AHL) is engaged in development of residential real‐ estate for middle income and senior living group in upcoming industrial areas and towns in India.
  • Has presence in 10 Indian cities
What's exciting about the business?

  • FY16 booking to grow by 22% from 1.8 mnsqft to 2.2 msn
  • In FY 16/17 management expects to book revenues of 4.04/4.08 mnsqft
  • Successfully raised 200 crores in QIP @ 213
  • We expect a revenue/PAT CAGR of 78%/58% over FY15-FY18.
  • Given sluggish market conditions and a comfortable cash position, ASFI is well placed to scoop up value-accretive land and projects to fuel mid-to-long term growth. Management has indicated a strong acquisition pipeline, which will be a key stock trigger once profitability improves.
  • Estimate revenue ~193% revenue CAGR during FY15‐17E (to ~Rs 8.9 bn), on the back of higher deliveries from Ashiana Town Beta, Rangoli Gardens, Ashiana Anantara, Ashiana Navrang, Ashiana Utsav (Lavasa) and Gulmohar Gardens.
  • Expect AHL to report ~195% net profit CAGR during FY15‐17E (to ~Rs 2.9 bn with average margins of 32.7% (32.4% in FY15E). 
  • They earn maintenance income from all their projects
Number

Rs. in million 2013A 2014A 2015A 2016E
Net Sales
1486
1106
1427
6384
Growth %

-25.6%
29%
347%
EBITDA
349
205
373

Growth %

-41.2%
81.6%

PAT
330
223
464
2090


-32.3%
107
351%



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