The Hindu Business Line : Mahindra Gesco Developers stock hits 52-week high

THE stock of Mahindra & Mahindra group company, Mahindra Gesco Developers, on Thursday closed 10 per cent up despite postponement of Cabinet decision on opening up real estate sector for FDI.

The stock scaled its 52-week high at Rs 136, with a volume 14.35 lakh shares on the BSE and 34.19 lakh on the NSE. In the last 11 sessions, the stock has raced to this level from Rs 55.

According to dealers, for the real estate stocks possibility of opening the door FDI remains the immediate trigger as the Government is expected to take a final view after temporary postponement. The stock bounced back after a brief hiccup following the postponement news (reportedly because of polls in Bihar and Jharkhand), which came in during the trading session.

The company, one of a few listed on the bourses, is into property management, developing including execution and marketing on turnkey basis. According to the management, the company has to its credit 20 lakh sqft of completed projects and 6 lakh sqft in various stages of completion. It has taken up a number of residential and commercial projects in Mumbai, Pune, New Delhi, Bangalore and Gurgaon.

The company, which has a capital base of Rs 31.03 crore, has reported a 28 per cent increase in net sales in the first nine months of the current fiscal. "There is also steady rise in its profits since 2003-04 fourth quarter," Mr Devarsh Vakil of Anagram Stockbroking pointed out.

However, a mutual fund manager felt that at the today's closing price, it traded at 30 times its trailing 12-month earning per share. "Many who had entered the stock at lower levels are seen existing and a set of new investors are entering the counter witnessing the sharp growth in price in the recent sessions," the fund manager said.

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