Omaxe ltd

Omaxe ltd recently announced its annual results which came as a pleseant surprise for the holders of the stock. The company managed a turnover of Rs 2281 crores and a consolidated profit of Rs 498.4 crores on an equity base of 173.56 crores resulting in an eps of Rs 29 after extraordinarly items. Its resrves stood at Rs 1239.6 crores. The public shareholding is just 10.72 percent. The company has been in news over the past for good. In feb the company won a contract from Naya raipur developement autourity to build a township which would include resdiential and commercial buildings, golf villas and a hotel and the project cost stands at Rs 1200 crores. It then tied up with thai based company for spa franchasie in north india. Then came the news that the company had floated a subsidiary National Affordable Housing and Infrastructure which will be building the affordable houses. In all, Omaxe plans to build about 10 lakh low-cost houses. Proposals have already been sent to the state governments of Delhi, Madhya Pradesh, Punjab and Rajasthan. The company has earmarked Rs 200 crore for slum rehab projects. Such projects will help Omaxe in acquiring land at a cost which will make development of affordable or low-cost houses a feasible option. The latest new around is that the promoters are scouting buyers to sell a part of their stake in the company to raise around Rs 1500 crore. If this deal goes through this would be big boost for the stock and one can expect fireworks here. I personally am keeping a close watch on the stock and would be putting money here in tranches.