Tuesday, August 11, 2009

how to get 600 percent retrun from ganesh housing corporation ltd

sir i have purchased ganesh housing 500 share @ 105 rs. how future ofthis stock?-ask shri achin gupta from e-mail

1.ganesh housing corporation ltd is a 10 rupees face value share.
2. Promoters hold 57.49 percent stake in ganesh housing corporation and general public hold 10.73 percent stake FII hold 20.22 percent and mutual fund hold 5.41 percent share so share holding pattern is good and show ganesh housing corporation has good fundamental.
3.EPS of ganesh housing corporation ltd (GHCL) is 32.48 and book value is 127.95 in March 2008.
4. Ganesh housing corporation ltd (GHCL) has also free reserve of 117.95 rupees per share.
5. Debt/equity ratio in GHCL is 0.19 is also good.
6. Fundamental is very strong in this company than why it traded at low price in market? Yes, I have answer…. market is always right…. see it June quarter result below

Year 2009/06 2008/06 Var %
Sales Income 11.25 34.40 -67.29

Gross Profit 2.92 26.45 -88.96

PAT 1.55 25.19 -93.84

I think you understand this company profit down 88 percent in this quarter so price is low and market already discounted its result.
7. Year high and low of ganesh housing corporation ltd is also interesting for you see…..
Yearly High Lows
Year High Low
1996 65.20 20.00
1997 26.75 8.25
1998 11.00 11.00
1999 24.95 9.50
2000 18.00 3.15
2001 4.65 3.75
2002 9.90 2.00
2003 13.59 2.95
2004 43.00 6.94
2005 176.70 32.10
2006 324.10 44.10
2007 714.90 278.00
2008 830.00 47.00
It is quite interesting that a 2 rupees share of 2002 traded at 830 in 2008 . please also note difference of its year high and low in every year is 4-6 time so I think ganesh housing corporation limited is a fundamentally sound stock but it is also driven by speculators and I do not think that 88 percent fluctuations on profit in a year is normal thing.
8. finally my advice for you that track this share for its year low and enter only in year low in such type of stock because if you enter in year low than you are able to make near about 600 percent profit (not surely)in such type of stock but if you enter at year high than you loss more than 80 percent of your money easily ….so wait for year low and if you track its price regularly you easily find it then start accumulating .

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