Ganesh Housing (GANESHHOU)
CyclicalFairStock Score: 61/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹835.6 |
| Market Cap | ₹6,967.83 Cr |
| P/E Ratio | 26.24 |
| ROCE | 44.02% |
| ROE | 3.57% |
| Dividend Yield | 0.18% |
| Profit Growth | -54.9% |
| Debt/Equity | 0.13 |
| Sales Growth | 85.6% |
| Promoter Holding | 73.06% |
| 52-Week Range | ₹500 — ₹899.7 |
| Sector | Realty |
| Book Value | ₹279.61 |
Strengths
- Near debt-free balance sheet with debt/equity of 0.03
- High promoter holding of 73.06% aligns owner interests with minority investors
- ROCE of 44.02% shows strong capital efficiency at the project level
- Latest quarter remains profitable with net profit of ₹54 Cr on sales of ₹91 Cr
- Reported P/E of 13.34 is optically reasonable for a property developer
Concerns
- Sales down 64.48% and profit down 66.59% indicate severe cyclical/project lumpiness
- ROE of only 3.57% is weak against a price-to-book of 3.98
- Piotroski F-Score of 3/9 signals poor financial and operational health
- Dividend yield of just 0.74% offers little compensation while waiting
AI Analysis
Ganesh Housing is a real estate developer, and my first rule is to stay within my circle. A 64.48% drop in sales and a 66.59% fall in profit scream cyclicality or project lumpiness, not franchise strength. In this business, reported earnings are not sustainable earning power; a developer may recognise revenue only as projects complete, so a single quarter of ₹91 Cr sales and ₹54 Cr profit tells me little about the annual trajectory. The balance sheet is genuinely encouraging: debt/equity of 0.03 and promoter holding of 73.06% mean I am not fighting leverage and owner interests are aligned with mine. ROCE of 44.02% looks impressive, but it is a project-level metric; the ROE of just 3.57% on a book value of ₹160.87 is far less exciting, especially when the market price is ₹639.90, or 3.98 times book. That is a demanding price for a business whose top line has just shrunk by two-thirds. The Piotroski F-score of 3/9 reinforces caution: weak fundamental signals. The P/E of 13.34 is optically cheap, but in cyclical stocks a low P/E can be a value trap when earnings are about to normalise; I need a margin of safety. FairStock’s 35/100 mixed score matches my own skepticism. Ganesh may be a decent asset with a clean balance sheet, but at this price I would rather wait. Let the cycle show me consistent bookings and cash flow before I pay four times book for a collapsed topline.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer