AMJ Land Holdings Ltd
(BSE Code: 500343) (CMP: Rs.21.35) (FV: Rs.2)
AMJ Land Holdings Ltd (AMJ) was incorporated in 1964 to manufacture speciality papers at its plant in Pune and subsequently diversified into a wide range of speciality papers and several other activities including converted tissue products, real estate development, information technology (IT) and FMCG products. It demerged its paper manufacturing business in January 2016. Currently, it is focused on its real estate development in Pune. It is also engaged in the business of generation and sale of power. It has 3 wind power plants at Satara and Sangli with an aggregate generation capacity of 4.6 MW.
AMJ is currently developing a residential project ‘Greens’ in Pune in partnership. It has completed 6 buildings so far with plans being finalized for the 7th building. It awaits approvals for developing a 12 acre land in Pune with a potential development of 9 lakh sq.ft. of residential apartments. It entered into a MoU last year for this project. The construction of another project ‘Green Ville’ is in progress with about 2 lakh sq.ft. of saleable area. AMJ has an equity capital of Rs.8.2 crore supported by reserves of Rs.93.69 crore. The promoters hold 61.75% of the equity capital, which leaves 38.25% stake with the investing public. With a share book value of Rs.24.85, its P/BV ratio works out to just 0.86x.
During Q2FY19, AMJ posted 58% higher PAT of Rs.2.46 crore on sales of Rs.5.77 crore and an EPS of Re.0.6. During H1FY19, it reported 101% higher PAT of Rs.3.9 crore on higher sales of Rs.13.41 crore and an EPS of Re.0.95. H1FY19 PAT was 17% higher than the PAT recorded for full FY18. It paid 10% dividend for FY18. Currently, the stock trades at a P/E of 14.23x and is available at 40% discount to its 52-week high of Rs.35.9 recorded in July 2018. The stock looks attractive based on its financial parameters. Investors can buy this stock with a stop loss of Rs.17. On the upper side, it could zoom to Rs.28-35 levels in the long-term.