ELDECO HOUSING AND INDUSTRIES LIMITED

COMPANY NAME- ELDECO HOUSING

SECTOR- REALITY

Market Capitalization:  144.02 Cr.

CMP- 675 RS

OPM 5Year: 16.55%

Return on equity: 19.93%

Return on invested capital: 18.04%

PEG Ratio: 0.16

Interest Coverage: ₹ 6.70

Debt to equity: 0.50

Book value: ₹ 583.69

Number of equity shares: 0.20

TTM EPS:  104.06

COMPANY PROFILE    -Eldeco Housing

Eldeco Housing & Industries Ltd diversified and modernized its operations & is a Public Limited Company with a diversified range of products for supply to customers in both, domestic and international markets. The Eldeco Group has forefront of Real Estate development in North India since 1975. The group is synonymous with timely and quality delivery in a number of cities like Luck now, Kanpur, Agra, Noida, Greater Noida and NCR of Delhi. In the construction and real estate development Eldeco has delivered more than 200 projects spanning townships, high-rise condominiums, row houses, malls and office complexes. In addition, 30 projects are in various stages of active execution. The aggregate constructed area stands at more than 40 million sq.ft with more than 17000 satisfied customers. Currently apart from the towns mentioned above, Eldeco is developing integrated townships in Panipat, Sonepat, Ludhiana, Jhansi and Jalandhar. The transparent and principle driven business philosophy has widely recognized. The business activities rest on the principle of high quality, superior construction technology and high consumer satisfaction. Eldeco stands firm in its commitment to ‘creating value and cementing trust. The Group has two main companies
 Eldeco Housing and Industries Ltd. (EHIL) The company incorporated in the year 1985, has held an uninterrupted market leadership position in most major towns of UP, most notably Lucknow and Kanpur.
Eldeco Infrastructure and Properties Ltd. (EIPL) It was incorporated in 2000 to professionally undertake projects in the NCR, EIPL in recent years has had rapid growth in other regions as well. EIPL is a closely held unlisted company that also acts as the promoting company for many projects specific special purpose companies. Projects • Residential • Commercial • Industrial  

compounded Sales Growth:

10 Years:

14.69%

5 Years:

25.35%

3 Years:

13.63%

TTM:

159.93%

Compounded Profit Growth:

10 Years:

18.75%

5 Years:

46.99%

3 Years:

28.45%

TTM:

216.85%

Return on Equity:

10 Years:

16.75%

5 Years:

14.89%

3 Years:

16.11%

TTM:

19.93%

The company’s net sales 

the company net sales registered 250.87% increase in    

sales at rs 54.68 crs from rs 16.60cr over the corresponding quarter last year.

During Q1 FY17, net profit jumps to Rs. 9.09 cr  against Rs. 2.15 in the corresponding quarter ending of previous year

Earnings per Share for the company were Rs. 45 compared to Rs. 10 in Q1 FY16.  

 Profit before interest, depreciation and tax is Rs. 28.05 cr as against Rs. 7.22 in the corresponding period of the previous year. 

During the year, the company achieved a turnover of Rs. 140.96 cr as against Rs. 54.23 cr in the previous year.

Company is regularly paying dividends from last 10 years.

Net sales and profit after tax are expected to grow at 22 pc cagr from 2016 to 2018 

Annual Estimated Results (A*: Actual / E*: Estimated) YEARS       FY16A      FY17E      FY18E 

Net Sales      140.96        190.29            212

EBITDA            28.05          41.78.           51.25

 Net Profit         9.09             17                 23.13

 EPS                 45               85                  115

P/E                   15               7.94              5.86

DISCLAIMER- iNVESTED IN Eldeco housing . THIS IS FOR EDUCATIONAL PURPOSE ONLY. PLZ TAKE ADVICE FROM RESEARCH ANALYST BEFORE INVESTING

GST -BOONER or CHOKER

GOODS SERVICE TAX IS NOT THAT GOOD.

               GST is trending now a days.Market nowadays is moving northwards on two things Monsoon & GST.If you believe that after GST running a business will become so easy then wait a sec!!! You need to read the GST act carefully.
                We know that government acts and rules are very boring and cumbersome to read but when we read GST act we will come to know that it is not that biggest tax reform;it is going to be a biggest difficulty and a web which are going to create
GST has two motives
1-There are several taxes in the country which is the biggest hurdle in making India a common market.GST will ensure tax imposed on manufacturing; sales and services with a common rate due to which India will emerge as a common market place.
2-It will reduce inflation as there are different taxes -direct ,indirect which increases inflation. Apart from Custom Duty all parts of Taxes excise,service,vat,octroi,state and central direct and indirect taxes will be united whichWill decrease the rate of tax.With GST the tax levied from manufacturer or service provider at different stages will be vanished and there will be single tax to be levied on final product ,sales or service.which is expected to reduce inflation and will provide a very gentle tax administration framework which ultimately will reduce complexity.
             With these reasons GST hopes are taking Market to a higher level.But GST is not going to fulfill all , in fact it is going to do almost Opposite to this.There are many provisions in this which will push backwards our tax systems instead of propelling in forward directions.For example let us take registration which is the basic aspect of taxation.If GST comes one has to do several registrations.According to GST act there are three layered taxes in it-State,Central and Integrated. One who supply or is selling to whole country has to do three registrations in every state and one has to file separate return from all three and take care of Taxes and also there will be infinite no of registration to be done.
       Also if a company is doing several buisness then it has to do registration separately.
                One more provisions is there that if a company send a product or service to its unit or branch then the tax will be imposed on unit and branch , the receiver will have to apply for tax return afterwards.
      Now Input tax credit is the soul of GST.according to which during manufacturing or supply tax paid will be returned on raw material or service provided.This system will vanish Multiple Taxes on one final product or service but as per GST if the supplier does not pay tax to govt then the manufacturer who use the raw material from the supplier can not apply for tax credit-return.It will increase legal issues and notices.
                       In this three layered tax system there will be no stamp duty,no motor vehicle tax and tax on petrol diesal covered and even octroi in some states.The Rate of GST is most contentious.All type of direct and indirect taxes are around 24pct So  it has toAround 18-20.so in turn service tax has to be increased by 4-6 pct.which can increase inflation.
                 In my opinion with such complexity the compliance cost for tax rules will also be increased. Now its the government can only tell that how the GST will ease tax system with infinite no. Of  tax registrations.we all are hoping that with GST we will get advanced easy and long lasting tax system but this system will also open gate for complexity and dissatisfaction.