Ansal Housing (507828)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Trades at a P/B of 0.81, a 19% discount to stated book value of ₹21.25
• Latest quarter sales of ₹66 Cr with only a ₹2 Cr loss, showing operations are near breakeven
• ROCE of 4.70% is positive despite negative ROE, indicating some underlying capital efficiency
• Price has recovered from ₹5.13 to ₹17.24, reflecting growing market interest

Concerns

• Profit growth of -141.59% and ROE of -8.27% show no current earnings power
• Sales growth of -25% indicates the business is contracting
• Piotroski F-Score of 3/9 signals weak financial health and possible balance sheet stress
• No dividend and a meaningless P/E provide no income or earnings support for the valuation

AI Analysis

At ₹17.24, Ansal Housing trades at 0.81 times book value of ₹21.25. In Graham's language, this is an asset play, not a compounding machine. The market is offering me ₹21.25 of stated net worth for only ₹17.24. But I must ask whether that book value is real. The company just lost ₹2 Cr on sales of ₹66 Cr in the latest quarter, and profit growth came in at -141.59%. A negative ROE of -8.27% tells me management is currently destroying shareholder value, not creating it. Sales also shrank 25%, so the operating business is contracting. The positive ROCE of 4.70% is small comfort; it is barely above real borrowing costs in today's India. With a Piotroski F-Score of only 3/9, the financial signals are weak. I cannot rely on earnings to pay me; there is no dividend, and the P/E is meaningless when profits are absent. Therefore, my investment case rests entirely on assets and potential recovery. The price has climbed from ₹5.13 to ₹17.24, so Mr. Market has noticed something. But I need evidence: profitable quarterly results, stabilization of sales, and proof that land and projects can be sold at or above book value. Ansal Housing is a real estate developer, so the value lies in land banks and project pipelines, not in current income. If those assets are worth what the balance sheet says, the downside seems protected. But if book value cracks under debt and slow sales, the low P/B becomes a trap. I would keep the position small, demand a wide margin of safety, and watch each quarter like a hawk. This is a potential value recovery, not a franchise. Until earnings confirm the balance sheet, it remains an asset play.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer