Omaxe Focus on affordable-housing projects

Omaxe rose 3.31% to Rs 221.30 at 13:50 IST on BSE on reports it is planning to invest Rs 8000 crore in next five years in affordable-housing projects.

The stock hit a high of Rs 227 and a low of 219 so far during the day. The stock had a 52-week high of Rs 613 on 13 December 2007 and the stock hit a 52-week low of Rs 180 on 24 March 2008.

The company’s current equity is Rs 173.57 crore. Face value per share is Rs 10.

The current price of Rs 221.30 discounts its Q3 December 2007 annualised EPS of Rs 28.37, by a PE multiple of 7.8.

Reportedly, Omaxe has floated a subsidiary National Affordable Housing and Infrastructure, which will be building affordable-houses. In all, Omaxe plans to build about 10 lakh low-cost houses. For affordable or low-cost houses, it has already acquired land in Neemrana, Ghaziabad and Lucknow. The first project, in Neemrana, will be launched after three months and will be completed in a span of 2-3 years. The company plans to build low-cost houses on slum land.

The company had reported a net profit of Rs 123.10 crore on sales of Rs 567.56 crore in Q3 December 2007.

Omaxe is a real-estate development and construction company. The company focuses on developing residential and commercial real-estate projects ranging from integrated townships, group housing and retail and other commercial properties, hotels, information technology and bio-tech parks to special economic zones (SEZ).