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					                                                                                              Initiating Coverage
                                                                                                 SECTOR: REAL ESTATE




                                                                     Ganesh Housing




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                                                      Com

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                                                                                       ab ad
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                                                      Ah
                                                             Firmly entrenched
Siddharth Bothra (SBothra@MotilalOswal.com); Tel: +91 22 3982 5407
Satyam Agarwal (AgarwalS@MotilalOswal.com) / Mansi Trivedi (Mansi.Trivedi@MotilalOswal.com)
                                                                                                                                       Ganesh Housing




                  Contents


                                                                                                                        Page No.


                  NAV of Rs1,112/share................................................................................. 4-7


                  Exciting play on Ahmedabad market ........................................................ 8-10


                  Pioneered the concept of townships in Ahmedabad ................................. 11-13


                  Expanding into new verticals................................................................... 14-18


                  Expect strong revenue, net profit growth ................................................ 19-21


                  Concerns ...................................................................................................... 22


                  Background .................................................................................................. 23


                                                     s
                  Annexure: an overview of Ahmedabad’ real estate market .................. 24-25


                  Financial statements ............................................................................... 26-29




14 January 2008                                                                                                                                    2
                                                                                                                      SECTOR: REAL ESTATE




                                                                                                       Ganesh Housing
                                BLOOMBERG
STOCK INFO.
                                GHFC IN
                                                            14 January 2008                                                         Buy
BSE Sensex: 20,728
                                REUTERS CODE
S&P CNX: 6,207                  GHFC.BO                     Initiating Coverage                                                     Rs690


Y/E MARCH                2007   2008E     2009E    2010E    Exciting play on the Ahmedabad market: Ahmedabad is emerging
                                                            as one of the fastest growing commercial hubs in India and stands to
Net Sales (Rs m)         536    2,423     5,041 11,164
EBITDA (Rs m)            201    1,534     2,232    3,640
                                                            benefit significantly from the ongoing industrial boom in Gujarat. The
NP (Rs m)                321    1,347     1,775    2,792
                                                            state boasts of GDP growth rate of 10.6%, which is higher than the
EPS (Rs)                  6.8    41.3      54.5     85.7    national average. Ganesh Housing Corporation (GHCL) is the largest
EPS Growth (%)          -29.2   506.0      31.7     57.3    land bank holder in Ahmedabad, with ~66msf of strategically located
BV/Share (Rs)            77.4    59.2      71.8     97.3    plots in and around the city. It also has a proven execution track record
P/E (x)                 100.4    16.6      12.6      8.0    of ~15msf residential development since inception.
P/BV (x)                  8.9    11.6       9.5      7.0
                                                            Pioneered townships in Ahmedabad: GHCL has pioneered the
EV/EBITDA (x)           102.2    14.4       9.8      6.5
EV/Sales (x)             38.4     9.1       4.3      2.1
                                                            concept of townships in Ahmedabad and is currently developing three
RoE (%)                   4.4    34.9      37.9     44.0
                                                            mega townships aggregating to ~46msf. Its integrated development
RoCE (%)                 12.0    45.3      47.4     53.8    approach allows it to attain higher yields and better margins.

                                                            Foray into new verticals positive: GHCL is expanding its development
                                                            portfolio from residential to new verticals such as commercial and retail,
                                                                                                                            s
                                                            which enjoy higher yields and better margins. We expect GHCL’ revenue
KEY FINANCIALS
                                                            mix to witness a significant change and model revenues from the
Shares Outstanding (m)                               32.6
Market Cap. (Rs b)                                   22.3
                                                            commercial vertical to increase from nil in FY07 to 74% in FY10.
Market Cap. (US$ b)                                   0.6
Past 2 yrs. Sales Growth (%)                         89.7
                                                            Buy with a target price of Rs890: Over FY07-10, we expect GHCL’          s
Past 2 yrs. NP Growth (%)                            74.6   revenues and net profit to increase at a CAGR of 175% and 170%,
Dividend Payout (%)                                   7.3   respectively, driven by strong growth from the commercial and retail
Dividend Yield (%)                                    0.1
                                                            verticals. Our target price of Rs890, is based on a 20% discount to NAV
                                                            of Rs1,112/share to account for (1) city-specific concentration, (2)
                                                            execution risk, and (3) the fact that almost 50% of land bank is yet to be
                                                            transferred from promoter group companies to GHCL. Buy.
STOCK DATA                                                  STOCK PERFORMANCE (1 YEAR)

52-Week Range                                     830/278
                                                                         Ganesh Housing (Rs) - LHS       Rel. to Sensex (%) - RHS
Major Shareholders (as of September 2007)                    900                                                                      82
Promoters                                            39.0
Domestic Institutions                                 7.5    725                                                                      58
FIIs/FDIs                                            35.5
Others                                               18.0    550                                                                      34

Average Daily Turnover                                       375                                                                      10
Volume ('000 shares)                                 41.6
Value (Rs million)                                   21.5    200                                                                    -14
1/6/12 Month Rel. Performance (%)                 12/5/60      Jan-07         Apr-07          Jul-07         Oct-07            Jan-08
1/6/12 Month Abs. Performance (%)              15/41/106




14 January 2008                                                                                                                            3
                                                                                                                        Ganesh Housing




                               NAV of Rs1,112/share


                               Our target price for GHCL, Rs890/share is at 20% discount to our FY09 NAV of Rs1,112/
                               share. We believe that GHCL is well placed to benefit from the opportunities in
                                            s
                               Ahmedabad’ upcoming real estate industry with its quality land bank, lucrative integrated
                               developments and entry into new verticals like commercial, retail and hospitality.
                               Concentration of land bank in Ahmedabad, execution risk and the pending transfer of 50%
                               of its landbank from promoter group companies to GHCL are the key concerns, which
                               compels us to assign a discount to NAV to arrive at our target price.

                     s
    We estimate GHCL’ NAV      We estimate GHCL's NAV (FY09E) at Rs1,112/share. The residential segment accounts
   (FY09E) at Rs1,112/share    for 26% of gross asset value (GAV), the commercial vertical accounts for 47% of GAV,
                               and the retail vertical for 20% of GAV. For the purpose of calculating NAV, we have
                               considered that the landbank of ~600 acres (33msf) would be transferred from the promoter
                               group companies to GHCL. The company has already entered into MoUs for the land
                               transfer. We have estimated that GHCL would develop the entire landbank over the next
                               ten years. We have valued the cash flows that the company would derive from developing
                               its entire land bank over the next ten years by discounting them to the present value and
                               deducting all applicable taxes and operational costs. We have assumed selling rates and
                               capitalization rates for the properties depending on location, asset type, and asset quality.

                               NAV CALCULATIONS

                                                                     (RS M)     PER/SHARE (RS)            % OF NAV            % OF GAV

                               Residence                            16,293                  500                  45                  26
                               Commercial                           29,946                  919                  83                  47
                               Retail                               12,903                  396                  36                  20
            Our NAV estimate   Hotel                                  4,202                 129                  12                   7
        includes Rs442/share   Gross Asset Value (GAV)              63,344                1,944                 175                 100
                               Less: Tax                            12,669                  389                 -35                 -20
 towards land bank yet to be
                               Add: Cash                                750                  23                   2                   1
  transferred to the company   Less: Debt                               202                   6                  -1                   0
                               Less: Land Cost Outstanding            9,600                 295                 -26                 -15
                               Less: Operating Exp                    5,384                 165                 -15                  -9
                               Net Asset Value (NAV)                36,239                1,112                 100                  57
                               Note: Our FY09E NAV of Rs1,112/share includes Rs442/share towards land bank of ~600 acres (33msf)
                               to be transferred by promoters to GHCL. It has already entered into MoUs for this transfer for a consideration
                               of Rs9b.                                                      Source: Company/Motilal Oswal Securities




14 January 2008                                                                                                                            4
                                                                                            Ganesh Housing




                  VERTICAL-WISE GAV

                                                                  Retail
                                                                  20%



                                                                           Hotel
                                                                            7%
                                      Commercial
                                        47%



                                                                     Residence
                                                                       26%



                                                                      Source: Company/Motilal Oswal Securities

                  The commercial vertical forms 47% of GAV, while the residential and retail verticals
                  account for 26% and 20% of GAV, respectively. The hospitality vertical accounts for 7%
                  of GAV.


                  NAV calculation: key assumptions
                  1. For the purpose of calculating NAV, we have considered the entire landbank of ~66msf,
                     which includes ~33msf of land yet to be transferred from promoter group companies
                     to GHCL.
                  2. We have assumed that GHCL would be able to develop and sell its entire land bank
                     (66msf) over the next ten years.
                  3. We have assumed stagnant realizations for all verticals for FY08 and FY09. We have
                     assumed 5% CAGR in realizations beyond FY09.
                  4. We have assumed 5% CAGR in cost of construction across all verticals.
                  5. In the retail and commercial verticals, we have assumed a cap rate of 9.5% and 90%
                     occupancy rate.
                  6. We have assumed average construction period of 24 months for residential projects,
                     18-24 months for commercial complexes, and 24-36 months for retail projects.


                  Sensitivity analysis
                  Our NAV estimates are sensitive to (1) realizations, (2) cost, and (3) WACC. A 5%
                  increase in realizations would raise our NAV estimate by 12.7%. A 5% increase in cost
                  across verticals would negatively impact our NAV by 6.4%, while a 100bp increase in
                  WACC would lower our NAV estimate by 3.4%.

                  NAV sensitivity
                  Base NAV (Rs1,112 per share)
                  Realizations: -5% = Rs971/share (-12.7%); +5% = Rs1,253/share (+12.7%)
                  Construction cost: +5% = Rs1,040/share (-6.4%); -5% = Rs1,184/share (+6.4%)
                  WACC: +100bp = Rs1,074/share (-3.4%); -100bp = Rs1,151/share (+3.4%)


14 January 2008                                                                                             5
                                                                                                                  Ganesh Housing




                                 Changes to NAV from
                                 5% CAGR in prices in FY09: Residential – Rs1,156/share, Commercial – Rs1,172/
                                 share, Retail – Rs1,137/share. Thus, a 5% price CAGR in FY09 will result in NAV of
                                 Rs1,242/share (+Rs130/share).
                                 Cap rate of 9% (v/s 9.5% assumed): Commercial – Rs1,179/share and Retail – Rs1,140/
                                 share. Thus, 50bp decline in cap rate will result in NAV of Rs1,207/share (+Rs95/share).


                                 NAV excluding land yet to be transferred = Rs670/share
    About ~600 acres of land     Of the total land bank of 1,215 acres, 615 acres is held by GHCL and the balance ~600
     held by promoter group      acres is held in group companies. GHCL has entered into an MoU with these group
        entities are yet to be   companies for the transfer of the land held by them. On these ~600 acres that are yet to
        transferred to GHCL      be transferred to it, GHCL has planned total development of ~33msf, which includes two
                                 townships – 28msf and five retail properties – 5msf.

                                 The MoU for the transfer of ~33msf land, dated 21 September 2007, has been registered
                                 with the State Government. The amount payable is Rs2.9b for the land at Ognaj Township,
                                 Rs1.9b for the land at Adalaj Township, and ~Rs4b for the five retail properties. The
                                 management is committed to transfer the land held in group companies by FY09. However,
                                 the mode of payment for this land transfer has not yet been finalized.

                                 PROJECTS - LAND YET TO BE TRANSFERRED

                                 PROJECT         LOCATION                 LAND    CONSTRUCTIBLE       SALEABLE     EXPECTED

                                                                     AREA (MSF)       AREA (MSF)     AREA (MSF)    COMPLETION

                                 Townships
                                 Adalaj          Adalaj                     2.7              6.1            7.0    Mar-14
                                 Ognaj           Ognaj                      8.1             18.2           21.2    Mar-15
                                 Retail
                                 Megapolis I     Paldi                      0.1              0.2            0.3    May-11
                                 Megapolis II    Ambavadi                   0.1              0.1            0.2    Mar-13
                                 Megapolis III   Thaltej, SAL Rd            0.4              1.0            1.3    Mar-12
                                 Megapolis IV    Thaltej, Nr SG Rd          0.3              0.4            0.5    Mar-14
                                 Megapolis V     Sola                       0.7              1.6            2.1    Mar-14
                                 Total                                     12.4             27.6           32.6
                                                                                           Source: Company/Motilal Oswal Securities


  Excluding this, we estimate    Excluding the land yet to be transferred, we estimate NAV for the properties under all
       s
 GHCL’ NAV at Rs670/share        verticals at Rs670/share. The land yet to be transferred constitutes ~40% of our NAV
                                 estimate of Rs1,112/share.




14 January 2008                                                                                                                  6
                                                                                                                    Ganesh Housing




                                   NAV CALCULATIONS (EXCLUDING LAND BANK OF 33MSF YET TO BE TRANSFERRED)

                                                                      (RS M)   PER/SHARE (RS)        % OF NAV               % OF GAV

                                   Residence                           8,391             257                  38                 27
                                   Commercial                         20,604             632                  94                 67
                                   Hotel                               1,623              50                   7                  5
                                   Gross Asset Value (GAV)            30,618             940                 140                100
                                   Less: Tax                           6,124             188                 -28                 -20
                                   Add: Cash                            750               23                   3                  2
                                   Less: Debt                           202                6                  -1                  -1
                                   Less: Land Cost                      600               18                  -3                  -2
                                   Less: Operating Exp                 2,603              80                 -12                  -9
                                   Net Asset Value (NAV)              21,840             670                 100                 71
                                                                                            Source: Company/Motilal Oswal Securities



                                   Profitability of key projects
                                                                                     s
                                   The township at Ognaj accounts for 32% of GHCL’ development plans and about 27%
                                   of GAV. The golf township at Godhavi forms 27% of development plans and 21% of GAV
                                   and the township at Adalaj forms 10.7% of development plans and 8.5% of GAV. The IT
                                   SEZ at SG Road forms 20% of development plans and 27.5% of GAV. The three townships
                                   and the IT SEZ forms ~90% of development plans and accounts for ~84% of GAV.


PROFITABILITY OF LARGE PROJECTS

PROJECT            LOCATION       CATEGORY      AREA     % OF TOTAL    EXPECTED   REALIZATION        COST            GAV          % OF

                                                MSF      DEV PLANS      LAUNCH       RS/SQ FT     RS/SQ FT         (RS M)          GAV

Smart City         Godhavi        Township
Residential                                     13.2           20.2        FY09         1,800         998           6,511         10.3
Commercial                                       2.7            4.1        FY09         3,263        1,575          3,585              5.7
Retail                                           1.2            1.8        FY09         3,789        1,890          1,811              2.9
Hospitality                                      0.7            1.0        FY12         6,646        3,627          1,450              2.3
Total                                           17.8           27.1                                                13,357         21.1
Adalaj             Adalaj         Township
Residential                                      5.4            8.3        FY10         1,890        1,047          2,900              4.6
Commercial                                       0.8            1.2        FY10         3,426        1,654          1,069              1.7
Retail                                           0.4            0.7        FY10         3,979        1,985           687               1.1
Hospitality                                      0.3            0.5        FY12         6,646        3,627           720               1.1
Total                                            7.0           10.7                                                 5,377              8.5
Ognaj              Ognaj          Township
Residential                                     13.0           19.8        FY10         1,890        1,213          5,001              7.9
Commercial                                       6.2            9.5        FY10         3,426        1,654          8,273         13.1
Retail                                           1.1            1.7        FY10         3,979        1,890          1,741              2.7
Hospitality                                      0.9            1.3        FY12         6,646        3,627          1,859              2.9
Total                                           21.2           32.3                                                16,874         26.6
Million Minds SEZ S. G. Road IT SEZ
Residential                                      2.1            3.2        FY10         1,995        1,544           636               1.0
Commercial                                      10.7           16.3        FY08         3,737        1,650         16,585         26.2
Hospitality                                      0.3            0.4        FY11         4,624        3,627           173               0.3
Total                                           13.1           19.9                                                17,394         27.5
Grand Total                                     59.1           90.0                                                53,001         83.7
                                                                                                     Source: Motilal Oswal Securities




14 January 2008                                                                                                                              7
                                                                                                             Ganesh Housing




                                Exciting play on Ahmedabad market


  Ahmedabad is emerging as      Ahmedabad is emerging as one of the fastest growing commercial hubs in India and
   one of the fastest growing   stands to benefit significantly from the ongoing industrial boom in Gujarat. The state boasts
   commercial hubs in India     of GDP growth rate of 10.6%, which is higher than the national average. Ahmedabad was
                                ranked fifth among the top nine IT destinations in the country as per Nasscom Survey
                                (2002). GHCL is the largest land bank holder in Ahmedabad, with ~66msf of strategically
                                located plots in and around the city. It also has a proven execution track record of ~15msf
                                residential development since inception. GHCL has planned development of 66.6msf –
                                46msf for township development; 13msf for IT SEZ, and the balance is spread across
                                residential, commercial and retail development. GHCL owns a large parcel of land on SG
                                Road, an upcoming area in Ahmedabad. SG Road has huge development potential, given
                                the possibility of increase in FSI from the current 1.8x to 2.5x.

                                    S
                                GHCL’ LAND BANK – PROJECT-WISE DEVELOPMENT DETAILS

                                PROJECT             LOCATION                      CONSTRUCTIBLE      SALEABLE    COMPLETION

                                                                                      AREA (MSF)   AREA (MSF)           DATE

                                Residential
                                Shangri La          Thaltej, Nr SG, Rd                       0.3          0.3        Mar-08
                                Shangri La II       Thaltej, Nr SG, Rd                       0.1          0.1        Mar-08
                                Mahalaya II         Sola, Science City Rd                    0.1          0.2        Mar-08
                                Suyojan             Nr Sola Bhagwat Vidhyapith Sola          0.2          0.2        Mar-09
                                Shangri La III      Thaltej, Nr SG, Rd                       0.1          0.1        Sep-09
                                Shangri La Shilaj   Shilaj, Nr SG Rd                         0.9          1.0        Sep-09
                                Mahalaya Greens     Opp. Nirma Univ, SG Rd                   1.8          2.1        Mar-12
                                Total Residential                                            3.5          4.0
                                Commercial
                                Ganesh Plaza I      Thaltej, Ahemdabad                       0.1          0.2         Mar-11
                                Ganesh Plaza II     Thaltej, Ahemdabad                       0.1          0.1         Sep-11
                                Total Commercial                                             0.2          0.3
                                SEZ
                                Million Minds SEZ   B/h Nirma Univ                           8.9         10.7         Mar-10
                                Total SEZ                                                    8.9         10.7
                                Retail
                                Megapolis I         Paldi                                    0.2          0.3        May-11
                                Megapolis II        Ambavadi                                 0.1          0.2        Mar-13
                                Megapolis III       Thaltej, SAL Rd                          1.0          1.3        Mar-12
                                Megapolis IV        Thaltej, Nr SG Rd                        0.4          0.5        Mar-14
                                Megapolis V         Sola                                     1.6          2.1        Mar-14
                                Total Retail                                                 3.4          4.4
                                Township
                                Smart City          Godhavi                                 15.3         17.8         Mar-14
                                Adalaj              Adalaj (100 acres)                       6.1          7.0         Mar-14
                                Ognaj               Ognaj (185 acres)                       18.2         21.2         Mar-15
                                Total Township                                              39.6         46.0
                                Hospitality
                                Hotel               B/h Nirma Univ, SG Rd                   0.3          0.3         Sep-12
                                Total Hospitality                                           0.3          0.3
                                Grand Total (msf)                                         55.9          65.6
                                                                                       Source: Company/Motilal Oswal Securities


14 January 2008                                                                                                                8
                                                                                                          Ganesh Housing




                               GHCL'S PROJECT LOCATIONS




                                                                                                            Source: Company



                               Quality land bank
      GHCL has a land bank             s
                               GHCL’ land bank of 1,215 acres is spread across Ahmedabad. Of this, 615 acres is held
       of 1,215 acres spread   by the company directly and the balance ~600 acres is held in group companies, owned by
          across Ahmedabad     the promoters. It has development plans for ~66msf over the next 7-8 years, including
                               ~33msf held by promoter-owned group companies. The management is committed to
                               transfer the land held in group companies by FY09. The total outstanding amount towards
                               land is Rs9.6b, which is required to be retired over the next 5-6 years. This implies average
                               land cost of Rs206/sf, which is competitive.

                               GHCL had issued 11.2m shares for amalgamation with five promoter group companies,
                               which is effective from 17 December 2007. These include – Ramasagar Infrastructure
                               Private Limited, Nachiket Properties Private Limited, Manjari (Thaltej) Complex Private
                               Limited, Shaharsh Infrastructure Private Limited, and Ganesh Infrastructure Private Limited
                               with GHCL. ~150 acres of land held by these companies has been transferred to GHCL
                               post amalgamation.

14 January 2008                                                                                                           9
                                                                                                     Ganesh Housing




                  VERTICAL-WISE LAND BANK DETAILS

                  DEVELOPMENT                                                MSF                              (%)

                  Residential                                                1.9                              2.9
                  Bungalows                                                  0.6                              0.9
                  Apartments                                                 1.3                              2.0
                  Commercial                                                 0.3                              0.4
                  Retail                                                     4.4                              6.6
                  Townships                                                  46.0                            70.1
                  Residential                                                31.6                            48.2
                  Commercial                                                 9.8                             14.9
                  Retail                                                     2.7                              4.2
                  Hotels                                                     1.9                              2.9
                  SEZ                                                        13.1                            19.9
                  Residential                                                2.1                              3.2
                  Commercial                                                 10.7                            16.3
                  Hotels                                                     0.3                              0.4
                  Grand Total                                                65.6                          100.0
                                                                             Source: Company/Motilal Oswal Securities


                  PROJECTS TRANSFERRED ON MERGER WITH FIVE GROUP COMPANIES

                  GROUP COMPANY                      PROJECT                                    SALEABLE AREA (MSF)

                  Ramasagar Infrastructure           Shangri la III                                             0.1
                  Nachiket Properties                Ganesh Plaza II                                            0.1
                  Manjari (Thaltej) Complex          Shangri la Shilaj                                          1.0
                  Shaharsh Infrastructure            Million Minds SEZ                                         11.0
                  Ganesh Infrastructure              Ganesh Plaza I and Corporate Office                        0.2
                  Total                                                                                        12.3
                                                                             Source: Company/Motilal Oswal Securities



                  Proven execution capability
                  GHCL has developed and delivered ~15msf of residential space since its inception in
                  1961. It has been a pioneer in concepts like earthquake resistant homes and smart homes.
                  GHCL is in the process of developing a mega golf township spread over 450 acres and an
                  IT SEZ spread over 150 acres.

                      S
                  GHCL’ COMPLETED PROJECTS

                  International Pharma and Biotech Park                        75 Acres
                  Ratnam                                                       216 Apartments
                  Maniratnam                                                   92 Row houses
                  Maniratnam 2                                                 51 Row houses
                  Mahalaya                                                     70 Twin Bungalows
                  Shangrila Village                                            483 Plotting Scheme
                                                                             Source: Company/Motilal Oswal Securities




14 January 2008                                                                                                       10
                                                                                                            Ganesh Housing




                               Pioneered the concept of townships in Ahmedabad


                               GHCL has pioneered the concept of townships in Ahmedabad and is currently developing
                               three mega townships aggregating to ~46msf. Its integrated development approach allows
                               it to attain higher yields and better margins for its products. GHCL is developing three
                               townships in Ahmedabad, covering an area of ~46msf – Godhavi, Adalaj, and Ognaj.

                               Godhavi Township
    The pioneer of townships   At Godhavi, the company is in the process of developing a mega golf township project of
     in Ahmedabad, GHCL is     450 acres. This township is targeted at the middle and upper middle class segments. The
  now developing three mega    project is strategically located, as it is just 25 minutes drive from the airport and about 7km
townships aggregating 46msf    from SG Road. The project would have an 18-hole golf course, country club, luxurious
                               villas and apartments, shopping mall, hospital, school and helipad service. We expect this
                               project to be launched in 1QFY09 and be completed by FY16.

                               DEVELOPMENT PLANS OF THE GODHAVI TOWNSHIP

                                                                                                                MSF

                               Apartments & Bungalows                                                           13.2
                               Commercial                                                                        2.7
                               Retail                                                                            1.2
                               Hospitality                                                                       0.7
                               Total                                                                            17.8
                                                                                      Source: Company/Motilal Oswal Securities


                               GOOGLE IMAGE OF GODHAVI LAND




        7kms from S.G.
     Road, commercial hub
        of Ahmedabad




      25mins drive from
   airport via S.P.Ring Road




                                                                                                             Source: Company


14 January 2008                                                                                                            11
                                                                                                            Ganesh Housing




                                Adalaj Township
                                The township at Adalaj is spread over land area of 2.7msf and is targeted at the upper-
                                middle and upper classes. It is strategically located on the SG Road and is at a 20-25
                                minutes drive from the airport. This township includes luxurious villas, apartments, mall,
                                multiplex, business tower, hospital and school. The township includes 5.4msf of residential,
                                0.8msf of commercial, 0.4msf of retail and 0.3msf of hospitality development. We expect
                                the residential development at this township to be launched in FY09 and to be completed
                                over a period of seven years. We have assumed an average launch price of Rs1,800/sf.

                                DEVELOPMENT PLANS OF THE ADALAJ TOWNSHIP

                                                                                                               MSF

                                Residential                                                                     5.4
                                Commercial                                                                      0.8
                                Retail                                                                          0.4
                                Hotel                                                                           0.3
                                Total (msf)                                                                     7.0
                                                                                      Source: Company/Motilal Oswal Securities


                                GOOGLE IMAGE OF ADALAJ LAND




      18kms from airport
  located on S.G. Road, which
                           s
    links four major IT SEZ’




                                                                                                             Source: Company




14 January 2008                                                                                                            12
                                                                                                        Ganesh Housing




                             Ognaj Township
                             The township at Ognaj is spread over land area of 8.1msf. The township is targeted at the
                             upper-middle and upper classes. It is strategically located on the SP Ring Road and is at a
                             15-20 minute drive from the airport. This township includes a golf course, country club,
                             luxurious villas, apartments, mall, multiplex, business tower, hospital and school. The
                             township includes 13msf of residential, 6.2msf of commercial, 1.1msf of retail and 0.9msf
                             of hospitality development. We expect the residential development at this township to be
                             launched in FY09 and to be completed over a period of seven years. We have assumed an
                             average launch price of Rs1,800/sf.

                             DEVELOPMENT PLANS OF THE OGNAJ TOWNSHIP
                                                                                                            MSF

                             Residential                                                                   13.0
                             Commercial                                                                     6.2
                             Retail                                                                         1.1
                             Hotel                                                                          0.9
                             Total (msf)                                                                   21.2
                                                                                  Source: Company/Motilal Oswal Securities


                             GOOGLE IMAGE OF OGNAJ LAND




      15kms from airport
   Just 1km from S.G Road,
      commercial hub of
         Ahmedabad




                                                                                                         Source: Company




14 January 2008                                                                                                        13
                                                                                                                   Ganesh Housing




                                   Expanding into new verticals


                                   GHCL's has planned ~7msf retail development
  GHCL plans to develop five       Traditionally a developer of residential properties, GHCL is expanding into newer verticals
 malls covering ~5msf and an       like retail and hotels. The company has planned the development of five malls covering
additional ~2msf retail space      ~5msf. Given the growth in the retail industry in Ahmedabad, we believe that GHCL
              at its townships     would draw significant benefits. Including the retail developments at the three townships,
                                   the total area under retail development is ~7msf. We expect retail development to commence
                                   from FY09 and be completed by FY15.

                                       S
                                   GHCL’ PLANNED RETAIL DEVELOPMENT
                                   PROJECT               LOCATION            SALEABLE AREA (MSF)               COMPLETION DATE

                                   Megapolis I           Paldi                                  0.3                    May-11
                                   Megapolis II          Ambavadi                               0.2                    Mar-13
                                   Megapolis III         Thaltej, SAL Rd                        1.3                    Mar-12
                                   Megapolis IV          Thaltej, Nr SG Rd                      0.5                    Mar-14
                                   Megapolis V           Sola                                   2.1                    Mar-14
                                   Smart City            Godhavi                                1.2                    Mar-14
                                   Adalaj                Adalaj                                 0.4                    Mar-14
                                   Ognaj                 Ognaj                                  1.1                    Mar-15
                                   Total Retail                                                 7.1
                                                                                             Source: Company/Motilal Oswal Securities



                                   Hopitality foray with four planned hotels
It is foraying into hospitality,   GHCL has also planned the development of four business and star hotels. We expect all
               with four hotels    the hotels to be fully operational from FY14. We have considered average occupancy of
                                   75% for these hotels. Three of these hotels would be part of the three townships and the
                                   fourth hotel would be part of the Million Minds IT SEZ.

                                       S
                                   GHCL’ PLANNED HOTEL DEVELOPMENT

                                   HOTEL                                           AREA (MSF)                  COMPLETION DATE

                                   Hotel                  Million mineds SEZ              0.3                          Mar-10
                                   Smart City Godhavi     Godhavi                         0.7                          Mar-14
                                   Adalaj                 Adalaj                          0.3                          Mar-14
                                   Ognaj                  Ognaj                           0.9                          Mar-15
                                   Total                                                  2.1
                                                                                             Source: Company/Motilal Oswal Securities


                                   GHCL, a key beneficiary of rising demand for retail space: CG Road, the retail high
                                   street of the city, has been a favored location for malls and exclusive showrooms of
                                   various international brands. Of late, the SG Highway has become the most preferred
                                   destination for organized retail due to availability of larger developments. At present, ten
                                   malls are operational in the city. High propensity to spend, entrepreneurial spirit, wide
                                   product range and competition among the retail chains are driving the retail market in the


14 January 2008                                                                                                                   14
                                                                                                          Ganesh Housing




                              city. By end-2009, the city is expected to receive a supply of 4-4.5msf built-up area in the
                                                               s
                              retail segment. Most of GHCL’ retail developments are located in upcoming areas and
                              we believe that the company is favorably positioned to make the most of the increasing
                              demand for retail space in Ahmedabad.

                              Retail high street developments in Ahmedabad have seen their rentals rising by around
                              20% in the last few years. Western suburban locations have witnessed appreciation in
                              rentals of 21-25% and prevailing rates are Rs100-115/sf per month. The peripheral micro
                              market has witnessed annual appreciation of 30% and rental values are around Rs150/sf
                              per month.


                              Million Minds SEZ – to cater to the growing IT/ITES demand
        The company is also   GHCL is developing a mega IT SEZ spread over 155 acres, located on SG Road in
   developing a mega IT SEZ   Ahmedabad. The project envisages the development of 13msf in all, including 10.7msf
      spread over 155 acres   commercial area, 2msf residential area, and the balance would be utilized for hospitality,
                              retail, open spaces and other utilities. The project is currently under construction and is
                              expected to be completed by FY14. The company has sold 35 acres of land at this site to
                              DLF for Rs1.2b.

                              The management is in talks to sell another 20 acres at this site for Rs1.4b, which is ~51%
                              higher than its previous sale to DLF. We expect this project to be launched in 4QFY08 and
                              be completed by FY14. We have assumed average rentals of Rs30/sf per month and
                              construction cost of Rs1,650/sf, which we believe is conservative. As there is no major
                              supply expected in this region in the near term, we believe that the company will be in a
                              position to command higher rentals considering the increased demand. We estimate this
                              project to contribute ~28% of the company's GAV.

                              DEVELOPMENT PLAN OF MILLION MINDS SEZ

                                                                                                                MSF

                              Residential                                                                        2.1
                              Commercial                                                                        10.7
                              Hospitality                                                                        0.3
                              Total                                                                             13.1
                                                                                    Source: Company/Motilal Oswal Securities


                              SALE OF LAND AT MILLION MINDS SEZ

                                              ACRES               RS M         RS M/        SALEABLE*              RATE

                                                                            PER ACRE         AREA MSF            RS/PSF

                              DLF                 35              1,200           34               2.6                 459
                              Unnamed             20              1,400           70               1.5                 936
                              *Considering FSI of 1.3x and 30% loading              Source: Company/Motilal Oswal Securities




14 January 2008                                                                                                              15
                                                                                                                                                                                            Ganesh Housing




                                  GOOGLE IMAGE OF MILLION MINDS SEZ




     Located on S.G.Road




LOCATION          DISTANCE FROM

             MILLION MINDS IT

                      SEZ (KMS)

Airport                    ~12
Main City                    6
Railway Station             18



                                                                                                                                                                                                 Source: Company


                                  There is huge potential for the development of commercial office space and IT parks in
                                  Ahmedabad. GHCL is all set to tap this potential, with its commercial developments and
                                  its IT SEZ at Million Minds, located on SG Road.

                                  AVERAGE RENTALS - AHMEDABAD OFFICE DISTRICTS (RS/SF PER MONTH)


                                                                            C G Road                     Ashram Road                           Sarkhej Gandhinagar Highw ay
                                   32


                                   26


                                   20


                                   14

                                    8
                                        Jan-01




                                                                   Jan-02




                                                                                              Jan-03




                                                                                                                         Jan-04




                                                                                                                                                    Jan-05




                                                                                                                                                                               Jan-06




                                                                                                                                                                                                            Jan-07
                                                          Sep-01




                                                                                     Sep-02




                                                                                                                Sep-03




                                                                                                                                           Sep-04




                                                                                                                                                                      Sep-05




                                                                                                                                                                                                   Sep-06
                                                 May-01




                                                                            May-02




                                                                                                       May-03




                                                                                                                                  May-04




                                                                                                                                                             May-05




                                                                                                                                                                                        May-06




                                                                                                                                                                                                                     May-07




                                                                                                                                                                                                 Source: Company




14 January 2008                                                                                                                                                                                                               16
                                                                                                Ganesh Housing




                  Dynamic growth in Ahmedabad has made a vast difference to the landscape of the city.
                  With the CBD (Ashram Road, CG Road) lacking space for development, new micro-
                  markets have emerged across the city. A number of office developments have come up on
                  SG Road, due to the congestion in the core city. The focus of development has shifted
                  from eastern Ahmedabad to the suburban and peripheral locations in the western part of
                  the city. The cost of IT/ITES operations in Ahmedabad being lower by 40-50% as compared
                  to tier-I cities, substantial potential is envisaged for future IT/ITES investment.

                  With several tax incentives, concessions and an FAR of 2.25x, the city is expected to
                  attract more IT/ITES companies. Currently, IT/ITES development in Ahmedabad is at a
                  nascent stage. Info City, an IT Park spread over 150 acres in Gandhinagar has tenants like
                  Microsoft, ACI and TCS. IT/ITES SEZ by the DLF Group, Mindspace IT Park by the
                  Rahejas and Gandhinagar Electronics Estate by Gujarat Industrial Development Corporation
                  (GIDC) are expected to be operational in the next few years.

                  ESTIMATED OFFICE SPACE ADDITION
                                                       FY07    FY08         FY09            FY10           FY11

                  IT/ITES Employees ('000s)           1,699   2,090        2,570           3,162          3,860
                  IT/ITES Employee Addition ('000s)    329     391          481              591           698
                  Top 3 Companies                       41      45           53               63             74
                  Other Companies                      288     346          427              528           624
                  Space Required (msf)
                  IT/ITES                               33      39           48               59             70
                  Corporate Segmnet                     14      17           21               25             30
                  Total                                 47      56           69               84           100
                                                                                   Source: Motilal Oswal Securities


                  We believe that Ahmedabad has the basic infrastructure necessary for it to expand as a
                  commercial hub. It is well connected by railway and is one of the six operating divisions of
                  the Western Railway. The Sardar Vallabhbhai Patel International Airport provides for both
                  domestic and international aviation. Ahmedabad is also a part of the Golden Quadrilateral
                  Project connecting the four metros in India. The effect of good infrastructure facilities
                  was seen in the Gujarat Global Investor Summit 2007 where many MoUs were signed in
                  different sectors. The focus of the Summit was on sectors such as Agro & Food Processing,
                  Textiles & Apparel, Chemicals, Pharmaceuticals, Engineering, Biotechnology, IT/ITeS,
                  Healthcare and Tourism in Ahmedebad. A total investment of approximately Rs112.4b
                  is expected in these sectors. MoUs were also signed for total investment of
                  approximately Rs72b for the development of SEZs at various locations in
                  Ahmedabad. The Ahmedabad - Gandhinagar corridor is expected to witness growth and
                  investment, mainly on the Sarkhej - Gandhinagar Highway as the eventual synergy in the
                  expansion of Ahmedabad.




14 January 2008                                                                                                   17
                                                                                            Ganesh Housing




                  Major developers such as DLF have plans to invest in IT Parks, and other infrastructure
                  projects in Ahmedebad. Indian IT major TCS has filed a formal application with the Gujarat
                  government to set up a special economic zone (SEZ). Satyam and TCS are likely to invest
                  of Rs4b each over the next few years in their projects. Developers such as DLF, Rahejas
                  are coming up with integrated township projects in the city. Another development in the
                  coming future is the Gujarat International Finance Tech-City (GIFT) - a financial services
                  city consisting of an international financial city segment, domestic finance city sector, a
                  technology park and an integrated township has already been committed by way of MoUs
                  by ICICI and Kotak Mahindra Bank. This project has a built-up area of approximately
                  25msf and would include offices (to take up 60% of total space), residences (25% of total
                  area), commercial buildings (11%) and services sector (4%). With all the above stated
                  developments, Ahmedabad is likely to see robust demand for commercial office space in
                  the next 12-18 months.




14 January 2008                                                                                           18
                                                                                                                    Ganesh Housing




                                    Expect strong revenue, net profit growth


                                                        s
                                    We expect GHCL’ revenues to increase from Rs536m in FY07 to Rs11b in FY10,
                                    representing a CAGR of 175%, manily backed by increased contribution from the
                                    commercial and retail verticals. Net profit would increase from Rs141m in FY07 to Rs2.8b
                                    in FY10 – a CAGR of 170%, buoyed by 162% CAGR in EBITDA. Higher contribution
                                    from the lucrative commercial and retail verticals would lead to margin expansion.

                                    REVENUE BREAK-UP (RS M)
                                    Y/E MARCH                                2007           2008E           2009E           2010E

                                    Residential                              536             433             296             463
                                      Revenue (%)                          100.0             17.9             5.9             4.1
                                    Commercial                                  -            650           3,332           8,245
                                      Revenue (%)                               -            26.8            66.1            73.9
                                    Retail                                      -               -            153           2,456
                                      Revenue (%)                               -               -             3.0            22.0
                                    Others                                      -          1,340           1,260                -
                                      Revenue (%)                               -            55.3            25.0               -
                                    Net Sales                                536           2,423           5,041          11,164
                                                                                            Source: Company/Motilal Oswal Securities



                                    Competitive land cost
             GHCL’ average
                     s              The total outstanding amount towards land is Rs9.6b, which is required to be retired over
        land cost is Rs206/sf,      the next 5-6 years. The average land cost is Rs206/sf, which is competitive. Post the
         which is competitive       amalgamation with five group companies, ~150 acres of land has been transferred to
                                    GHCL. The company had issued 11.2m shares for this amalgamation.


                                    Revenue mix to get diversified
       As the commercial and                             s
                                    We expect GHCL’ revenue mix to increasingly get diversified, as the commercial and
        retail verticals begin                                                                   s
                                    retail verticals begin contributing. The residential vertical’ contribution is likely to be just
        contributing, GHCL’
                          s         4% in FY10, down from 100% in FY07. We expect the retail vertical to start contributing
          revenue mix would         to revenues from FY09. The commercial vertical will start contributing to revenues from
                  get diversified   FY09 onwards at Rs3.3b and is expected to peak at Rs14.7b in FY13. The retail vertical
                                    would start contributing to revenue from FY09 onwards at Rs153m and would peak at
                                    Rs8.9b in FY13.




14 January 2008                                                                                                                     19
                                                                                                               Ganesh Housing




                              REVENUE MIX (%)


                               120                        Residence         Commercial      Retail    Others

                                                                                            -                      -
                                90                                  25.0                    22.0                   24.7
                                                55.3
                                60

                                                                    66.1                    73.9                   67.8
                                30              26.8

                                                17.9
                                 0                                   5.9                     4.1                   7.5
                                            2008E                   2009E                  2010E                  2011E


                                                                                         Source: Company/Motilal Oswal Securities



                              Robust operating margins and earnings growth
   We expect PAT to grow at   We expect EBITDA to increase from Rs201m in FY07 to Rs3.6b in FY10, representing
  170% CAGR over FY07-10      162% CAGR. This expansion in EBITDA would mainly be on account increased revenue
                              contribution from the retail and commercial verticals. We also expect PAT to increase
                              from Rs141m in FY07 to Rs2.8b in FY10, representing 170% CAGR.

                              ROBUST FINANCIAL PERFORMANCE (RS M)


                               24,000                                Revenues             PAT


                               18,000


                               12,000


                                6,000


                                     0
                                            FY07             FY08                FY09                FY10              FY11


                                                                                         Source: Company/Motilal Oswal Securities



                              Sharp increase in production volumes
                                                s
                              We expect GHCL’ production volumes to increase from 2.4msf in FY08 to ~6.1msf in
                              FY10. Production volumes are likely to peak at 9msf in FY13 – township development
                              would account for ~70%, followed by SEZ at 2.9msf.




14 January 2008                                                                                                               20
                                                                                                                      Ganesh Housing




                      S
                  GHCL’ TOTAL LAUNCH PLANS (MSF)

                                   TOTAL    FY08       FY09   FY10    FY11     FY12      FY13         FY14      FY15        FY16    FY17

                  Apartments       1.9           0.4    0.2    0.2     0.3      0.5       0.0          0.0          0.0      0.0     0.0
                  Townships        42.7          1.5    2.7    3.6     5.3      4.5       5.2          5.4          5.6      5.2     2.1
                  Commercial       0.3           0.0    0.0    0.0     0.1      0.1       0.1          0.0          0.0      0.0     0.0
                  Retail           4.4           0.0    0.1    0.3     0.5      1.0       1.1          0.8          0.5      0.0     0.0
                  SEZ              12.8          0.5    0.8    1.9     2.2      2.9       2.6          1.9          0.0      0.0     0.0
                  Total            62.0          2.4    3.7    6.1     8.4      8.9       9.0          8.2          6.2      5.2     2.1
                                                                                      Source: Company/Motilal Oswal Securities


                  Residential (~54% of development plans): GHCL has development plans for 35.6msf
                  in the residential segment, which represents 54% of its overall development plans. About
                  89% (31.6msf) of the overall residential development represents townships. We estimate
                  launches in the residential vertical to peak at ~5.1msf in FY13.

                  LAUNCH PLANS FOR RESIDENTIAL SEGMENT - AHEMDABAD (MSF)

                                   TOTAL    FY08       FY09   FY10    FY11     FY12      FY13         FY14      FY15        FY16    FY17

                  Bungalows        0.6           0.3    0.0    0.0     0.0      0.0       0.0          0.0          0.0      0.0     0.0
                  Apartments       3.4           0.1    0.2    0.5     0.9      1.2       0.4          0.0          0.0      0.0     0.0
                  Townships        31.6          0.0    1.1    1.7     2.9      3.4       4.7          5.0          5.4      5.2     2.1
                  Total            35.6          0.4    1.2    2.3     3.8      4.6       5.1          5.0          5.4      5.2     2.1
                                                                                      Source: Company/Motilal Oswal Securities


                  Commercial (~31% of development plans): GHCL has development plans for ~20.7msf
                  in the commercial segment, which represents ~31% of its overall development plans. The
                                            s
                  SEZ forms ~52% of GHCL’ overall commercial development plans. We estimate launches
                  in the commercial segment to peak at ~3.7msf in FY12.

                  LAUNCH PLANS FOR COMMERCIAL SEGMENT (MSF)

                                             TOTAL     FY08   FY09    FY10     FY11      FY12         FY13      FY14        FY15    FY16

                  Ganesh Plaza I             0.2        0.0    0.0     0.0      0.0       0.1          0.1          0.0      0.0     0.0
                  Ganesh Plaza II            0.1        0.0    0.0     0.0      0.0       0.0          0.0          0.0      0.0     0.0
                  Million Minds SEZ          10.7       0.5    0.8     1.6      1.6       2.1          2.1          1.9      0.0     0.0
                  Smart City, Godhavi        2.7        0.0    0.1     0.3      0.4       0.4          0.4          0.4      0.5     0.1
                  Adalaj                     0.8        0.0    0.0     0.1      0.1       0.1          0.1          0.1      0.2     0.0
                  Ognaj                      6.2        0.0    0.3     0.6      0.9       0.9          0.9          0.9      1.2     0.3
                  Total                      20.7       0.5    1.2     2.6      3.1       3.7          3.7          3.4      2.0     0.5
                                                                                      Source: Company/Motilal Oswal Securities


                  Retail (~11% of development plans): GHCL has development plans for ~7.1msf in the
                  retail segment, which represents ~11% of its land bank. Retail development in townships
                  accounts for ~38% of the overall commercial development. We estimate launches in the
                  retail segment to peak at ~1.7msf in FY13.

                  LAUNCH PLANS FOR RETAIL SEGMENT (MSF)

                                           TOTAL       FY08   FY09     FY10      FY11        FY12            FY13         FY14     FY15

                  Retail                   4.4          0.0     0.1      0.3      0.5           1.0           1.1          0.8      0.5
                  Retail – Townships       2.7          0.0     0.1      0.4      0.4           0.5           0.5          0.4      0.2
                  Total                    7.1          0.0     0.2      0.8      0.9           1.5           1.7          1.2      0.8
                                                                                      Source: Company/Motilal Oswal Securities

14 January 2008                                                                                                                           21
                                                                                            Ganesh Housing




                  Concerns


                  Land yet to be transferred for ~33msf development: GHCL has entered into an
                  MoU with group companies for the transfer of ~33msf of land. As per this MoU dated
                  September 2007, the amount payable towards this land transfer is ~Rs9b. The development
                  of Adalaj and Ognaj townships and the five retail properties is planned on this land. The
                  company is committed to complete the land transfer by FY09.

                  Mode of payment for transfer yet to be finalized: As per the MoU, the amount payable
                  is Rs2.9b for the Ognaj township, Rs1.9b for the Adalaj township, and ~Rs4b for the retail
                  developments. The management expects the transfer to be completed by FY09, however,
                  the mode of payment for this transfer has not been finalized and thus, poses risk of equity
                  dilution.

                                                      s
                  Land bank concentration: GHCL’ entire land bank is in Ahmedabad. Large players
                  such as DLF, Parsvnath, and Raheja intend to launch projects in Ahmedabad, which would
                                               s                                        s
                  directly compete with GHCL’ projects. While we believe that the city’ real estate market
                  offers tremendous potential, an increase in competitive intensity could adversely impact
                          s
                  GHCL’ performance.

                  Aggressive development plans assumed: We have assumed that GHCL would be
                  able to effectively develop, finance and sell its developable area of ~66msf over FY08-17.
                  However, the substantial planned scale up of operations by GHCL and other domestic real
                  estate companies may result in supply exceeding demand in some pockets or demand
                  could peter down due to adverse economic factors.

                  Real risk of decline in property prices: We have not assumed any decline in prices in
                  our model and have even built a 5% CAGR from FY10. However, it is possible that real
                  estate prices may encounter a downturn and property prices may decline, adversely
                  impacting our NAV estimates.

                  Macro economic risks: Any weaker-than-expected GDP growth could negatively impact
                  the sentiment of buyers, leading to elusive demand. Also, any further tightening measures
                  and policy changes by the government (with regard to mortgage applications and approvals,
                  project financing, and property pre-sales) to curb speculation and over-investment could
                  adversely affect the bottomline and cash flows of property developers and sentiment of
                  home buyers.




14 January 2008                                                                                           22
                                                                                                              Ganesh Housing




                                 Background


                                 GHCL, an Ahmedabad-based real estate developer has developed 15msf till date. Amongst
                                 the largest land holders in Ahmedabad, it can be considered as one of the top five real
                                 estate companies in Gujarat. GHCL has an ISO 9001:2000 certification. It has several
                                 firsts to its credit – first earthquake-resistant project in Ahmedabad; ‘ smart homes’with
                                 digital security, solar passive architecture, wi-fi enabled project, etc.

                                 The company has constructed an Industrial Pharma and Bio-Tech Park. It has sales
                                 representative in Canada and USA to cater to the NRI demand for its luxurious projects.
                                 On 1 December 2006, GHCL signed an MoU of Rs7b for the growth of IT investment in
                                 the state of Gujarat.

GHCL'S LAND BANK DEVELOPMENT DETAILS

PROJECT                LOCATION                     LAND AREA (MSF)    CONSTRUCTIBLE       SALEABLE AREA         COMPLETION

                                                                           AREA (MSF) WITH LOADING (MSF)                DATE

Residential
Shangri La             Thaltej, Nr SG, Rd                       0.3               0.3                 0.3             Mar-08
Shangri La II          Thaltej, Nr SG, Rd                       0.1               0.1                 0.1             Mar-08
Mahalaya II            Sola, Science City Rd                    0.1               0.1                 0.2             Mar-08
Suyojan                Nr Sola Bhagwat Vidhyapith Sola          0.1               0.2                 0.2             Mar-09
Shangri La III         Thaltej, Nr SG, Rd                       0.0               0.1                 0.1             Sep-09
Shangri La Shilaj      Shilaj, Nr SG Rd                         0.6               0.9                 1.0             Sep-09
Mahalaya Greens        Opp. Nirma Univ, SG Rd                   0.8               1.8                 2.1             Mar-12
Total Residential                                               2.2               3.5                 4.0
Commercial
Ganesh Plaza I         Thaltej, Ahemdabad                       0.1               0.1                 0.2             Mar-11
Ganesh Plaza II        Thaltej, Ahemdabad                       0.0               0.1                 0.1             Sep-11
Total Commercial                                                0.1               0.2                 0.3
SEZ
Million Minds SEZ      B/h Nirma Univ                           6.8               8.9                10.7             Mar-10
Total SEZ                                                       6.8               8.9                10.7
Retail
Megapolis I            Paldi                                    0.1               0.2                 0.3             May-11
Megapolis II           Ambavadi                                 0.1               0.1                 0.2             Mar-13
Megapolis III          Thaltej, SAL Rd                          0.4               1.0                 1.3             Mar-12
Megapolis IV           Thaltej, Nr SG Rd                        0.3               0.4                 0.5             Mar-14
Megapolis V            Sola                                     0.7               1.6                 2.1             Mar-14
Total Retail                                                    1.6               3.4                 4.4
Township
Smart City             Godhavi                                 19.6             15.3                 17.8             Mar-14
Adalaj                 Adalaj (100 acres)                       2.7               6.1                 7.0             Mar-14
Ognaj                  Ognaj (185 acres)                        8.1             18.2                 21.2             Mar-15
Total Township                                                 30.4             39.6                 46.0
Hospitality
Hotel                  B/h Nirma Univ, SG Rd                    0.1               0.3                 0.3             Sep-12
Total Hospitality                                               0.1               0.3                 0.3
Grand Total (msf)                                              41.2             55.9                 65.6
                                                                                        Source: Company/Motilal Oswal Securities


14 January 2008                                                                                                                23
                                                                                             Ganesh Housing




                                                    s
                  Annexure: an overview of Ahmedabad’ real estate market


                  The Ahmedabad market is in a transition stage, with the real estate sector getting more
                  organized and user-specific. Over the next one year, the sector is expected to attract
                  an investment of Rs150b. Being designated as ‘      Megacity’ in the Union Budget,
                  2005 has brought substantial funding for upgradation of infrastructure in the city. Projects
                  like Ahmedabad Gandhinagar Metro Rail, Sabarmati River Front Development,
                  Bus Rapid Transportation System (BRTS) and expansion of the city in a planned
                  manner have attracted considerable amount of investment to the real estate market.


                  Increase in areas for business development
                  ? Several town planning schemes have led to development of organized space suitable
                     for offshoring business activities. Presence of quality human capital, availability
                     of land at reasonable prices and better connectivity make Ahmedabad an
                     attractive destination for business developments.

                  ?   Development of the Knowledge Corridor and approval of six SEZs would form a
                      strong economic base for the city. Also, industrial development across various sectors
                      like pharmaceuticals, chemicals, apparel and textiles has generated a number of
                      employment opportunities in the region.

                  Creation of new CBD's
                  ? The traditional retail markets of Ahmedabad primarily include old city locations of
                     Shahibaugh, Kalupur, and Relief Road.

                  ?   Ashram Road is the established CBD of the city, with a number of government
                      and corporate offices. Central locations of CG Road, Satellite and Drive-in Road
                      are also preferred due to better quality of space and their proximity to
                      residential developments in Kalupur, Daryapur, Raipur, Khadia and Jamalpur.

                  ?   The textile mill land in the eastern part of the city holds potential for new retail,
                      residential and commercial ventures.

                  Emerging residential locations
                  ? In the residential segment, with the Old Central Zone of the city having reached
                    saturation levels, locations like Navrangpura, Naranpura and Ambavadi are
                    witnessing strong demand for high-end apartments.

                  ?   Post the 2001 earthquake, there has been tremendous demand for low-rise
                      buildings, bungalows and row-houses. Suburban and peripheral locations like Bopal,
                      Ambali, Shilaj, Satellite, Memnagar, Vastrapur, Prahlad Nagar, Vasna and Paldi
                      are witnessing residential developments.

14 January 2008                                                                                            24
                                                                                                                                            Ganesh Housing




AHMEDABAD - KEY LOCATIONS
     Preferred locations for organised retail




                                                Sub-urban residential developments   Strong demand for high end residential development

                                                GHCL's residential developments

                                                                                                                                          Source: Maps of India


14 January 2008                                                                                                                                             25
                                                                                           Ganesh Housing




                  INCOME STATEMENT                                                                 (RS MILLION)

                  Y/E MARCH                                 2005    2006    2007   2008E   2009E         2010E

                  Residence                                                          433     296            463
                  Commercial                                                         650   3,332          8,245
                  Retail                                                              0      153          2,456
                  Others                                                           1,340   1,260             0
                  Net Sales                                  149     359    536    2,423   5,041         11,164
                    Change (%)                               5.0    44.6    86.6   352.1   108.0          121.5


                  Construction Expenses                       40     210    302      493   1,836          5,483
                  Staff Cost                                   3       3      7       61     102            226
                  Office & Site Establis. Exps                 6       8     33      194     405            896


                  EBITDA                                     102     140    201    1,534   2,232          3,640
                    % of Net Sales                          68.7    39.1    37.5    63.3    44.3           32.6
                  Depreciation                                 1       1      2       2       43            87
                  Interest                                     1       2      9       10      34            79
                  Other Income                                 1       7     36      163      64            16


                  PBT                                        101     144    227    1,684   2,219          3,490
                  Tax                                          -4      -1    85      337     444            698
                    Rate (%)                                 -4.0    -0.5   37.6    20.0    20.0           20.0


                  Reported PAT                               105     145    141    1,347   1,775          2,792
                  Extra-ordinary Income (Net of Expenses)      0       0    -180      0        0             0
                  Adjusted PAT                               105     145    321    1,347   1,775          2,792
                    Change (%)                              -19.1   -17.6   22.1   852.7    31.7           57.3

                  E: MOSt Estimates




14 January 2008                                                                                              26
                                                                        Ganesh Housing




                  BALANCE SHEET                                                 (RS MILLION)

                  Y/E MARCH               2005   2006   2007    2008E   2009E         2010E

                  Share Capital            40    120     207      326     326            326
                  Reserves                319    355    3,001   3,533   4,353          6,016
                  Net Worth               359    475    3,208   3,859   4,679          6,342
                  Loans                    21     54     203      210     750          1,500
                  Capital Employed        375    523    3,409   4,067   5,427          7,840


                  Gross Fixed Assets       20     22      26       50     866          1,743
                  Less: Depreciation        11    13      14       16      60            147
                  Net Fixed Assets          9      9      12       34     806          1,596


                  Curr. Assets            405    592    3,606   6,687   8,421         14,884
                  Inventory                28     52      77    3,689   3,148          7,942
                  Debtors                 104    264     786      299     622          1,376
                  Cash & Bank Balance      21    163    1,954     379   1,274            329
                  Loans & Advances        252     113    778    2,319   3,378          5,236


                  Current Liab. & Prov.    39     78     209    2,653   3,801          8,640
                  Creditors                25     48      91    2,086   3,054          7,465
                  Provisions               14     30     118      567     747          1,175
                  Net Current Assets      366    514    3,397   4,033   4,620          6,243
                  Application of Funds    375    523    3,409   4,067   5,427          7,840

                  E: MOSt Estimates




14 January 2008                                                                           27
                                                                               Ganesh Housing




                  RATIOS

                  Y/E MARCH                    2005    2006    2007    2008E   2009E   2010E

                  Basic (Rs)
                  Adjusted EPS                  35.1    9.6      6.8    41.3    54.5     85.7
                    Growth (%)               1,516.4   -72.5   -29.2   506.0    31.7     57.3
                  Consolidated EPS              17.7   24.1      0.2     7.6     0.0      0.0
                  Cash EPS                      68.9   18.9     16.5    88.3   121.6    194.7
                  Book Value                    44.9   19.8     77.4    59.2    71.8     97.3
                  DPS                            2.1    2.1      2.7     6.2     8.2     12.9
                  Payout (incl. Div. Tax.)       9.1   19.9     62.2    15.0    15.0     15.0


                  Valuation (x)
                  P/E                                          101.1    16.7    12.7      8.1
                  Cash P/E                                      41.9     7.8     5.7      3.5
                  EV/EBITDA                                    103.0    14.5     9.8      6.5
                  EV/Sales                                      38.7     9.2     4.4      2.1
                  Price/Book Value                               8.9    11.7     9.6      7.1
                  Dividend Yield (%)                             0.4     0.9     1.2      1.9


                  Profitability Ratios (%)
                  RoE                           39.1   24.4      4.4    34.9    37.9     44.0
                  RoCE                          63.9   26.1     12.0    45.3    47.4     53.8


                  Leverage Ratio
                  Debt/Equity (x)                0.1    0.1      0.1     0.1     0.2      0.2

                  E: MOSt Estimates




14 January 2008                                                                            28
                                                                             Ganesh Housing




                  CASH FLOW STATEMENT                                                (RS MILLION)

                  Y/E MARCH                  2005   2006    2007    2008E    2009E         2010E

                  PBT before EO Items        102    144      376    1,673    2,219          3,490
                  Add : Depreciation           1      1        2        2       43            87
                        Interest               1      2        9       10       34            79
                  Less : Direct Taxes Paid     -4     -1      85      337      444            698
                  (Inc)/Dec in WC            -314     -6   -1,421   -2,200     308         -2,568
                  CF from Operations         -206   142    -1,120     -851   2,159            390


                  (Inc)/Dec in FA              9      -1       -4      -24    -816           -877
                  CF from Investments         10      -1       -4      -24    -816           -877


                  (Inc)/Dec in Networth      218      -1   2,659      -466    -652           -652
                  (Inc)/Dec in Debt            9     33      149        7      540            750
                  Less : Interest Paid         1      2        9       10       34            79
                        Dividend Paid         10     29       64      230      304            477
                  CF from Fin. Activity      217      1    2,736      -700    -449           -458


                  Inc/Dec of Cash             20    142    1,791    -1,575     895           -945
                  Add: Beginning Balance       0     21      163    1,954      379          1,274
                  Closing Balance             20    163    1,954      379    1,274            329

                  E: MOSt Estimates




14 January 2008                                                                                29
                              Ganesh Housing




                  N O T E S




14 January 2008                          30
                              Ganesh Housing




                  N O T E S




14 January 2008                          31
                                                                                                                                                     Ganesh Housing




                                                      For more copies or other information, contact
                                                  Institutional: Navin Agarwal. Retail: Manish Shah
                                   Phone: (91-22) 39825500 Fax: (91-22) 22885038. E-mail: inquire@motilaloswal.com
                        Motilal Oswal Securities Ltd, 3rd Floor, Hoechst House, Nariman Point, Mumbai 400 021
This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Motilal Oswal
Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely
for your information and should not be reproduced or redistributed to any other person in any form.

The report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon such. MOSt or
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information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding
any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The
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MOSt and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. To enhance transparency,
MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.

       Disclosure of Interest Statement                                            Ganesh Housing
       1. Analyst ownership of the stock                                                 No
       2. Group/Directors ownership of the stock                                         No
       3. Broking relationship with company covered                                      No
       4. Investment Banking relationship with company covered                           No

This information is subject to change without any prior notice. MOSt reserves the right to make modifications and alternations to this statement as may be required
from time to time. Nevertheless, MOSt is committed to providing independent and transparent recommendations to its clients, and would be happy to provide
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14 January 2008                                                                                                                                                          32

				
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