This S&P BSE Smallcap Stock jumped 4% on Monday within the first two hours of markets opening after an announcement regarding its receipt of an order worth Rs. 360 crore. The company has a market cap of Rs. 1500 crore and is 7% away from its 52 week high, trading at Rs. 422.70 versus Rs. 408.65 at previous close.
The company’s shareholding comprises 70% by the promoters and the rest being held by the public.
In a filing dated 17th October 2023, Ajmera Realty & Infra India Ltd (“Ajmera”) announced that it has bagged a residential redevelopment project in Versova, Mumbai; targets sale value of Rs. 360 crore. In the pursuit of attaining 5x growth, Ajmera is undertaking redevelopment of Balkrishan Co-operative Housing Society based in Versova, one of the most sought-after locations by homebuyers in the Western Suburbs of Mumbai.
Located at a 2-minute walking distance from Versova Metro Station, the redevelopment will primarily comprise 3 BHK residential apartments with an estimated carpet area of ~90,700 sq. This project reportedly signifies a strategic move into a highly sought-after micro-market, drawing interest from homebuyers and notable individuals, including business leaders and celebrities.
This emerging area, benefitting from redevelopment efforts and convenient metro access, is poised for substantial growth in both demand and property values. The project’s advantageous location ensures access to a range of amenities, from quality healthcare and educational institutions to thriving commercial centers and recreational options, cementing Versova’s reputation as a prime destination for savvy homebuyers in Mumbai.
Commenting on the redevelopment, Mr. Dhaval Ajmera, Director – Ajmera said, “Redevelopment and repurposing old housing societies into modernized residential asset classes has gained significant prominence in MMR, thus opening doors to newer opportunities backed by redefined interest from homebuyers.
Versova as a location has gained momentous demand in the last decade. Given the upcoming infrastructure projects, this sentiment will only strengthen further. This project will provide a lifestyle upgrade and lucrative value appreciation on the existing residential assets to the residents and quality urban living to new homebuyers.
As we chart the perceived growth of Ajmera, this redevelopment project represents a strategic step towards achieving the 5x growth through JV / JDA / low capex acquisition via inorganic strategy.”
Ajmera, together with its subsidiaries, engages in the real estate development business in India. In FY23, the company’s revenue degrew 11% YoY from Rs. 405 crore to Rs. 361 crore. Net profits during the same period grew 73% YoY from Rs. 41 crore to Rs. 71 crore. This indicates a margin expansion of 965 bps.
Written by Sandeep R
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