Ansal Buildwell Ltd - 78.00 Rs

Incorporated in 1983, Ansal Buildwell Ltd (ABL) - flagship company of the high profile Ansal Group, is a well known player in the field of real estate development and construction. It has presence across the real estate sector and has expertise in developing shopping complex, malls, residential township, row houses, sky scrappers, corporate offices etc. In short it caters to both - residential as well as commercial sector. Notably, the group has a major contribution in converting the Connaught place, Delhi into an enviable commercial business district. Although company has majority projects in Gurgaon, still it can boast of developing landmarks like Sushant Lok I, II and III in south of Delhi, Ansal KRSNA-I & II, Ansal FORTE at Bangalore, Ansal's Riverdale at Kochi and Ansal's Green Valley at Dehradun and Prakash Enclave at Moradabad.

Shalimar Residency, Executive Residency, Silver Crest, Eden Villa, Oriental Homes, Royale Casa, Sushant Floors and Flexi Homes are few of its popular residential creations. In order to cater the elite class, company has recently designed and constructed prestigious projects namely 'Florence Homes', 'Florence Super', 'Florence Grand', 'Florence Manor' & 'Florence Elite' in Gurgaon. All these schemes are complete and possession is being offered to the respective clients. Among the ongoing and new projects, ABL is developing Florence Marvel & Florence Villa in Gurgaon and a huge residential township called “Ansal City” in Amritsar, Punjab. It has also acquired around 35 acres of land at Kochi for development of plots, villas and town houses, again under the project name “Ansal City”. On the commercial front company has completely handed over the corporate park namely Sushant Tower and Navkriti Arcade. It is now constructing a huge shopping mall called ‘BOOM PLAZA’ in Guragaon only. In the wake of the booming real estate industry, ABL has acquired land in Amritsar, Jaipur, Panipat, Faridabad and Jhansi. Infact in Faridabad company is venturing into multi-storeyed group housing societies.

Apart from real estate, ABL also carries out hi-tech engineering projects and has successfully being associated with Baner hydel project, Sardar Sarover Narmada main canal project, Jammu Udhampur rail link project, Bangladesh road project etc. Currently it is engaged in Thoubal spillway project-Manipur, NEIGRIHMS Project-Shillong, Palam Drain Project-Delhi & C-DOT main R&D building project-Delhi. Incidentally, company has diversified into hospitality also and has completed the work of group housing club namely 'Harmony Club'. Due to encouraging response for the membership, it has started another hospitality project 'Club Florence'. ABL has further expanded its area of operation by giving consultancy in sales & marketing of real estate to various new property owners. Moreover in joint venture with Chaudhari group of Nepal it has developed three projects in Nepal namely Kathmandu Residency, Mount View Residency Phase-I & Phase –II which are completely sold out and handed over.

Financially, ABL recorded a marginal growth of 5% in total revenue to 120 cr but its PAT quadrupled to 7.25 cr for FY07 against 1.70 cr last year. Hence it reported an EPS of 10 Rs and declared 18% dividend. For the latest June qtr, its topline grew by 30% to 28 cr whereas NP jumped up 70% to 1.80 cr. Hence for FY08 it may report revenue of 150 cr and profit of 10 cr which leads to an EPS of 14 Rs on small equity of 7.40 cr. Even at a modest discounting by 8x times, share price can shoot up to 120 Rs (50% appreciation) in 9 - 12 months.