The Indian benchmark equity indices ended Friday’s trading session with decent gains rising for the second day in a row. The NSE Nifty 50 gained 62.25 points or 0.28 percent to finish the day’s trading at 22,466.10, while the BSE Sensex closed 53.31 points or 0.34 percent higher at 73,917.03. 

Listed below is a small-cap stock that has delivered multibagger returns of 3,867 percent to its stakeholders in 4 years: 

With a market capitalization of Rs. 6,946 crores, the shares of Ganesh Housing Corporation Ltd started Friday’s trading session on a higher note at Rs. 870 compared to its previous close of Rs. 865.20. During the trading session, the shares hit a low of Rs. 823.20, losing around 4 percent and closed the day at Rs. 828.55 apiece. 

In May 2020, the stock price was trading at Rs 20.85 exhibiting a gain of around 3,904 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock four years ago, it would have converted to approximately Rs. 40 lakhs now. 

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Coming onto the company’s financial statements, the revenue zoomed by 53 percent from Rs. 181.43 crores during the December quarter to Rs. 276.78 crores in the March quarter. In addition, the net profits increased by 12 percent from Rs. 100.56 crores to Rs. 112.8 crores duirng the same timeframe. 

Comparing these metrics on a YoY basis, the revenue surged by 54 percent from Rs. 179.3 crores during Q4FY23 to Rs. 276.78 crores in Q4FY24. On the other hand, the net profits magnified by 186 percent from Rs. 39.42 crores to Rs. 112.8 crores during the same period. 

In FY24, Ganesh Housing Corporation had a Well-structured project pipeline towards developing 31.1 msf, generating sales value exceeding Rs. 1,60,000 million. 

The company is in the process of setting up a Special Economic Zone for 6 million sq. ft of space. Further, they have tied up with Tishman Speyer India by executing a Development Management Agreement and Leasing and Property Management Agreement. 

Moreover, the Ganesh Group has a land reserve exceeding 500 acres in and around Ahmedabad and the said land has a potential of 30 msf of development. 

Additionally, the company targets developing 33 msf of Infrastructure and special projects like Million Minds (IT-SEZ), township etc. in the next few years with a total sales value of Rs. 1,75,100 million. 

Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 9.21 percent during FY 22-23 to 29.72 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 21.37 percent to 39.56 percent during the same timeframe. And the company continues to remain debt-free from a peak debt of Rs 648.6 crore in FY19. 

Headquartered in Gujarat, Ganesh Housing Corporation is a prominent real estate developer in Gujarat, India, with a legacy spanning over 6 decades. The company has developed an area of more than 22 million square feet and offers various projects like Maple Country, Maple Trade Centre, Malabar Retreat, Maple Tree Garden Homes, and Maple County II. 

Written By Vaibhav Patil


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