The reality of Realty:
In Union Budget 2017, focusing on housing in the rural and urban sector, Finance Minister Mr. Arun Jaitley on Wednesday said that the government will complete 1,00,00,000 houses by 2019 for homeless and those living in kaccha houses. Reacting to this news, Realty and Housing company stock prices sky rocketed to close almost near day’s high. When closely observed among various listed opportunities, Ashiana Housing came into our Radar.
It was 1979 and India was slowly moving into the neoliberal age. Middle-class India, on its ride along the country’s growth story, was desperate for good quality housing that was hard to find in its budget range. It was against this background that Om Gupta setup Ashiana Housing as a game changer. Ashiana Housing was to give to the middle-class home owner features that were hitherto seen only in higher income level group housing: top quality construction, manicured lawns, expanse of greenery, children’s play area, swimming pools, clubs, a calendar of social activities for the whole family and a full roster of maintenance services.
As the bottom line grew healthier and awards started pouring in. Ashiana Housing walked on another unique path – it pioneered the retirement home movement in India where seniors could lead safe, active, enjoyable and comfortable lives. Here is the company that focused on needs over trends, quality over quantity, and people over profit margins.
Fundamentals of Ashiana Housing:
The stock is trading at Price to Earning ratio (PE) of 14. Considering the growth prospects, the stock is available at reasonable PEG of 0.59. Return On Equity (ROE) of nearly 16%, Profit Growth of 36% and sales growth of 30% make the stock attractive for investors looking to seize the opportunities provided by Mr. Market.
Technicals of Ashiana Housing:
The stock was trading in consolidation and has given a nice breakout in Daily, Weekly, and Monthly timeframe.
Technical setup indicates that any retracements can be used by bulls to shatter the confidence of the bears and any positive surprises can lift the stock towards 260-290 region. Remember, margin of safety is crucial in any type of investment and don’t try your luck over your finances.
Information presented in the above article is available in public domain and it should not be treated as “Research Report”
Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI “Any person who makes a recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in ASHIANA HOUSING.