Ashiana Housing & Finance India Ltd.
CMP - Rs. 213 BSE Code -523716
Ashiana Housing & Finance India Ltd. (Ashiana) known for its housing projects in Bhiwadi, has positioned itself as a provider of housing at affordable rates.
The company has been in existence for almost two decades. Having started its operations in Patna, the company extended its operations to Jamshedpur, Bhiwadi, Ghaziabad, Gurgaon and Greater Noida. Since its inception in 1986, Ashiana Housing has built and delivered 40 lakh square feet of residential and commercial space to the clients. The Corporate philosophy has always been to provide quality construction at affordable prices. The company started its operations in Jamshedpur in 1986 and in Bhiwadi in 1993.
PAST PROJECTS
The company has in the past completed various projects which include :-
Ashiana Villas, Bhiwadi - The project on 5 Acres land comprised of 49 Villas having a total built up area of over 1 lakh square feet and got completed in 2004.
Ashiana Gardens, Bhiwadi - The project comprised of 316 units on a plot area of 11 Acres and a total built up area of 3.75 lakh square feet was completed in 2004.
Ashiana Gulmohar Park, Bhiwadi - The project comprised of 195 units on a plot area of 7 Acres and a total built up area of 2.50 lakh square feet was completed in 2001.
Ashiana Bageecha, Bhiwadi - The project comprised of 253 units on a plot area of 5.7 Acres and a total built up area of 2.40 lakh square feet was completed in 1998.
Ashiana Greens, Bhiwadi - The project comprised of 125 units on a plot area of 2.75 Acres and a total built up area of 1.35 lakh square feet was completed in 1996.
Ashiana Heritage, Ghaziabad - The project on 1 Acres land comprised on 98 Units having a total built up area of over 1.46 lakh square feet and got completed in 2000.
Ashiana Suncity, Jamshedpur - - The project comprised of 249 units on a plot area of 8.30 Acres and a total built up area of 2.90 lakh square feet was completed in 2003.
Ashiana Enclave, Jamshedpur - - The project comprised of 288 units on a plot area of 6.25 Acres and a total built up area of 3.17 lakh square feet was completed in 2001.
Ashiana Gardens, Jamshedpur - - The project comprised of 555 units on a plot area of 14 Acres and a total built up area of 6.20 lakh square feet was completed in 1997.
Ashiana Residency Greens, Jamshedpur - A project comprising residential apartments in Jamshedpur. The project had a choice of 2 and 3 bedroom apartments and executive floors - a total of 149 residential units.
Besides, the company has also executed residential projects like Residency Garden, Shantiniketan and Plaza in Patna and various commercial projects.
ONGOING PROJECTS
The ongoing projects of the company include :-
Ashiana Greenhill, Neemrana - Nestled in the foothills of the Aravali Hills, the clear sky, lush green surroundings and the view of the Neemrana Fort, make Ashiana Green Hill a choice for the residents of Gurgaon and Delhi as the weekend outhouse as well as those working in Neemrana as their home. The company has sold the entire 280 units in the project and construction work is in full swing at the site.
Ashiana Utsav, Bhiwadi - Ashiana Utsav, Bhiwadi is being targeted towards retired and retiring people as a Retirement Resort. The project well equipped with recreational facilities like swimming pool and club is being projected as a place Celebrate Life after Retirement. The project is nearing completion.
Ashiana Rangoli, Bhiwadi - Ashiana Rangoli is a premium project and comprises residential apartments equipped with all amenities and recreational facilities like club and swimming pool.
Ashiana Gymkhana Club, Bhiwadi - This is a club with state-of-the art facilities that lets you enjoy the company of friends and experience the essence of pleasure, recreation, fitness, entertainment and relaxation. The club is being positioned as lifestyle of the emperors.
Ashiana Woodlands, Jamshedpur - Located in the foothills of the Dalma Hills in Pardih, Jamshedpur, the project offers 244 units comprising of three bedroom villas, executive floors and super deluxe apartments.
Financials
. The financial of the company are given as under :-
| QUARTERLY - LATEST RESULTS - Ashiana Housing & Finance (India) Ltd (Curr: Rs in Cr.) | |||||||||
| Particulars | Quarter Ended | Quarter Ended | Quarter Ended | YTD / Latest Half | YTD / Latest Half | YTD / Latest Half | Year Ended | Year Ended | Year Ended |
| Sales | 4.03 | 4.52 | -10.8 | 9.13 | 12.25 | -25.5 | 33.55 | 11.42 | 193.8 |
| Other Income | 0.72 | 0.43 | 67.4 | 1.56 | 0.95 | 64.2 | 2.61 | 1.47 | 77.6 |
| PBIDT | 0.16 | 0.11 | 45.5 | 1.4 | 1.23 | 13.8 | 5.33 | 0.17 | 3035.3 |
| Interest | 0 | 0 | - | 0 | 0 | 0 | 0 | 0 | - |
| PBDT | 0.16 | 0.11 | 45.5 | 1.4 | 1.23 | 13.8 | 5.33 | 0.17 | 3035.3 |
| Depreciation | 0.08 | 0.06 | 33.3 | 0.16 | 0.12 | 33.3 | 0.28 | 0.19 | 47.4 |
| PBT | 0.08 | 0.05 | 60 | 1.24 | 1.11 | 11.7 | 5.05 | -0.02 | LP |
| Tax | 0.02 | 0.01 | 100 | 0.16 | 0.11 | 45.5 | 0.45 | 0 | - |
| Deferred Tax | 0 | 0 | - | 0 | 0 | 0 | 0 | 0.11 | -100 |
| PAT | 0.06 | 0.04 | 50 | 1.08 | 1 | 8 | 4.6 | -0.13 | LP |
(Source : Capitaline)
The stock price chart is given below :-
(Source : Capitaline)
The company has a small Equity Capital of Rs.5.35 crores with promoters holding 65%. The total market cap of the company at its current stock price is Rs.114 crores. As on 31.3.2006, the company had investments of roughly Rs.21.50 crores out of which around Rs.18 crores were in various Mutual Funds, mostly in the Debt schemes. The company had a Cash and Bank Balance of Rs.16.30 crores on 31.3.06. The company has negligible debt.
Future Plans & Conclusion
BHIWADI - The company has aggressive expansion plans. Towards this, the company has acquired 23 acres of land in Bhiwadi and is launching Ashiana Angan in Bhiwadi. The company has already received the licence (90-B) for the same and will shortly launch the project. The project comprises a total of 1300 apartments of 2 and 3 bedrooms. The project would be valued at roughly Rs.300 crores.
JAIPUR - The company has acquired 5 Acres of land at Jaipur and is launching Ashiana Greenwood. The company through its subsidiary Ashiana Retirement Villages Ltd., has also entered into a Joint Venture with Jaipur Based Mangalam Group for development in 18 Acres at Kalwar Road, Jaipur.
PUNE - The company has entered into a Memorandum of Association with Lavsa Corporation Ltd., Pune for acquisition of 31 acres of land in Lavasa, Pune for making retirement homes.
Besides, the company is also considering fresh land acquisitions at Bhiwadi and Lawasa, Pune. The company is also considering land acquisitions at various other places in the NCR of Delhi.
As regard the latest financials of the company, there is a decline in revenues for the first 6 months of the current FY compared to the same period last year with almost stagnant profitability. This is because of the fact that the company follows the accounting method based upon Sales completion model - where sales are booked when possession is handed over to the customer. The company expects to handover possession of roughly 1000 units over the next 18 months - these include around 640 units at Ashiana Utsav, Bhiwadi 240 units at Ashiana Greenhill, Neemrana and 100 units at Ashiana Rangoli, Bhiwadi. The Revenues and profitability are therefore set for a quantum jump over the next few quarters.
The management projects total project sales of around Rs.1000 crores over the next 4 years. The figure is huge given the small equity capital of just Rs.5.35 crores.
Even though the company has been in the business for almost 20 years, the management has been conservative regarding land acquisitions. This is definitely hurting the company in the short run since the stock analysts are valuing the companies based upon their land bank and not upon their development & delivery capabilities.
We however believe this phenomena is a short term aberration which may get corrected soon. This is due to the fact that every day we hear of unheard of names getting into real estate or companies shifting from their core business to venture into real estate business or merging real estate arms with the listed entities. The situation is somewhat similar to what we saw during the technology boom in the year 2000. One may choose to ride the wave depending upon one's risk appetite - for how long will the wave lasts is anybody's guess.
Over the longer term, the ability to execute and deliver the project will be a parameter which would be as important or probably more important than the land bank. The company scores high on this parameter since it has demonstrated its ability to develop and deliver the projects in time and has created a loyal customer base. Infact, most of the business is either from the existing customers or through referrals. The company's focus has been on development and delivery of the projects and to acquire land at reasonable valuations, which would lead to long term wealth creation for the shareholders.
Investors can accumulate the stock at the current price and on declines.
BigGains !!
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