1. 📊 At a Glance
Ganesh Housing is a real estate developer from Gujarat that woke up from a decade-long nap and suddenly became profitable enough to make DLF blush. With 22 million sq. ft. sold and 35 million more under development, it has turned into a lean, debt-light profit machine boasting 80%+ OPM and 40%+ ROCE. But is this sustainable or just a bubble in a cement sack?
2. 🚀 Introduction with Hook
From being a small regional player to becoming one of the most profitable real estate companies in India, Ganesh Housing’s comeback arc is worthy of a Netflix series. With its recent EPS of ₹71.7 and almost debt-free balance sheet, it screams “value stock,” but there’s more to the story than meets the P/E ratio.
3. 🏢 Business Model (WTF Do They Even Do?)
- Primarily a real estate developer based in Gujarat (Ahmedabad focus)
- Focus on residential and commercial real estate
- Exploring expansion into SEZs and township projects
- In-house construction + JV development model
- Not a pan-India player (yet), but with massive land bank reserves
4. 💸 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 | 5Y CAGR |
|---|---|---|
| Revenue | ₹960 Cr | 29% |
| PAT | ₹598 Cr | 48% |
| OPM | 81% | Rising since FY22 |
| ROE | 35% | Consistent over 3 years |
| ROCE | 44% | Among the best in industry |
EPS jumped from negative to ₹71.7 in FY25
5. 🤔 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹1,004
- P/E: 14x
- Book Value: ₹247 (P/B ~4x)
- Market Cap: ₹8,370 Cr
Fair Value Range (EduInvesting Estimate):
- Base Case: 18x FY25 EPS = ₹1,290
- Stretch Case: 22x FY25 EPS = ₹1,577
✉️ FV Range: ₹1,290 – ₹1,577
6. 🎩 What’s Cooking – News, Triggers, Drama
- Consistent quarterly profits and EPS growth
- Q1 FY26 results due July 21, 2025
- Large land bank being monetized gradually
- High investor interest seen via shareholder growth: 13K → 38K in 2 years
- Debtor days rising (red flag to monitor)
7. 📈 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY20 | FY23 | FY25 |
|---|---|---|---|
| Borrowings | ₹533 Cr | ₹240 Cr | ₹27 Cr |
| Reserves | ₹575 Cr | ₹805 Cr | ₹1,973 Cr |
| Debt/Equity | 0.93 | 0.28 | 0.01 (virtually debt-free) |
Verdict: Cleanest real estate balance sheet this side of the Sabarmati.
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹31 Cr | ₹278 Cr | ₹1 Cr | ₹310 Cr |
| FY25 | ₹410 Cr | -₹389 Cr | -₹94 Cr | -₹73 Cr |
- Operating cash improving
- Aggressive reinvestment in CWIP
- No equity dilution despite heavy capex
9. 📊 Ratios – Sexy or Stressy?
- ROE: 35%
- ROCE: 44%
- OPM: 81%
- D/E: 0.01
- Inventory Days: 1,164 (high but improving)
- Debtor Days: 131 (rising from 50)
⚡ Overall: Very sexy, but keep an eye on working capital stress.
10. 💳 P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY22 | ₹383 Cr | ₹134 Cr | ₹71 Cr |
| FY23 | ₹616 Cr | ₹252 Cr | ₹102 Cr |
| FY24 | ₹891 Cr | ₹624 Cr | ₹461 Cr |
| FY25 | ₹960 Cr | ₹779 Cr | ₹598 Cr |
11. 📈 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | OPM | PAT | Mcap |
|---|---|---|---|---|---|
| DLF | 45x | 6.5% | 26% | ₹4458 Cr | ₹205K Cr |
| Macrotech | 51x | 15.6% | 29% | ₹2764 Cr | ₹140K Cr |
| Oberoi | 31x | 17.7% | 58% | ₹2167 Cr | ₹66K Cr |
| Brigade | 39x | 13.3% | 28% | ₹680 Cr | ₹26K Cr |
| Ganesh | 14x | 44% | 81% | ₹598 Cr | ₹8.3K Cr |
Ganesh Housing leads on ROCE, OPM, and valuation. Underdog? Overachiever? Maybe both.
12. 🧑💼 Miscellaneous – Shareholding, Promoters
- Promoter Holding: 73.06% (unchanged for years)
- FII Holding: Just 0.95%
- Retail/Public: 25.8%, but rising rapidly
- Shareholders: 13K → 38K in just 2 years
- Dividend payout down from 20% to 7% (more reinvestment?)
13. 🧰 EduInvesting Verdict™
Ganesh Housing is the Dhoni of Gujarat real estate – calm, consistent, and brutally efficient when it swings. With 80%+ OPM, <1% debt, 44% ROCE, and a P/E of just 14, this is probably the most undervalued real estate company in the listed space. But rising debtor days and inventory cycles are signals not to ignore.
FV Range: ₹1,290 – ₹1,577
🎓 ✍️ Written by Prashant | 🗓️ 10 July 2025
Tags: Ganesh Housing, Gujarat real estate, high ROCE stock, real estate turnaround, undervalued realty, debt-free real estate, DLF vs Ganesh Housing, Nifty microcap real estate, Ahmedabad real estate developer
