Ansal Buildwell Ltd Detail
Ansal Buildwell Limited is in portfolio of Subramanian P. He is one of the top investors in India. It belong to Real Estate sector. The Company prepares different type of Real Estate projects as mentioned below.
- Group Housing
- Independent Floors
- Commercial Space
As you can see above Company is not limited to any one vertical. It has forayed into most of the Real Estate verticals. I am listing projects company has successfully completed under below headings to give you an idea of achievements Company has made in these years. Note it is four decade old Company.
- Townships – Sushant Lok in Gurgaon is one flagship project under Township
- Group Housing – Royal Heritage in Faridabad and Garden View in Kochi
- Villas – Royale Villa in Amritsar and Green Vallery Dehradun
- Independent Floors – Flexi Homes Gurgaon
- Hospitality – Club Harmony in Gurgaon and Riverdale club Kochi
- Commercial Space – Boom plaza Gurgaon and Boulevard Centre Gurgaon
- Infrastructure – Jammu Udhampur Rail link and American Center Kolkata
It also started outside India engagement as well. One such project is Bangladesh road project in Bangladesh. Below project list gives you idea of Pan India presence. The Company is mainly focused on Gurgaon, Faridabad and Kochi. It has started working on projects in other parts of the Country as well.
Below is long term price performance of the Company.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Ansal Buildwell Ltd Performance
Ansal Buildwell is an example of bubble burst World Economy had in year 2008. The company raised from 4 to 400 mark in span of 3 years or so. That is more than 100 times return in such a short span of time. Majority of return was after year 2005 only.
The bubble got busted in subsequent years. The prices got beaten from 400 odd levels to below 50 levels after year 2008 crisis. It has never touched even 200 mark after that massive ride in year 2005 and 2006.
Since then Company has moved between 50 to 100 mark.Sometimes it does move ahead to 150 but most of the time it trades in 50 to 100 range.
The Company also pays dividend of close to 1% at current market price. Even if you consider the 52 week high it translates to half a percent which is good.
Ansal Buildwell Ltd My Opinion
Real Estate is core sector to say the least. Any Economic development requires investment in Infrastructure and construction of Commercial as well as Residential space.
The Company has few points going for it. It has penetration in all types of Real Estate ventures. This will help it diversify the project portfolio and win projects on those verticals by showcasing completed one.
Real Estate sector has struggled off late. many top companies have not performed in recent times on stock exchanges. The period before 2008 crisis was golden period for most of the real estate companies. Some market experts are in view that there will be revival in Real Estate Sector.Others want to stay away from the sector as of now.
The Pan India reach of the Company and spread in different verticals will help the Company. With new rules like RERA in real estate area protecting rights of people and trying to define guidelines for Constructors small players or unorganized players will perish with time. The sector will be dominated by organized players.
This change in landscape will help companies in future. Real Estate sector of India still has majority of players from unorganized small players. This shift in landscape will help listed companies. Affordable housing is one hot area in this sector now.
I would like to look into the Company as of now. I will not recommend to invest in it. I would rather track the Company and see how it is going ahead. The rise and fall in year 2005 to 2008 period is an alarm to investors. You should not invest in a company on run. Rather sit back and relax while the Company justifies the run. People have lost huge amount of money if invested during that mad run.