Shares of this microcap company locked 5 percent upper circuit in Tuesday’s trading session after winning a bid for a major Residential Development Project at GIFT City. The shares have delivered a whopping return of 166 percent to its shareholders in one year.
With a market capitalisation of Rs. 307 crores, the shares of Nila Spaces Ltd started Tuesday’s trading session on a higher note at Rs. 7.85, clocking a 5 percent upper circuit compared to its previous close of Rs. 7.48 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had won the bid for a significant residential building development project at GIFT SEZ.
This project, located on building footprint 26-C in the dual-use non-processing area of GIFT City, involves the development rights for a minimum of 5,22,000 square feet.
As per reports, the company outbid 10 other bidders to emerge as the highest bidder with its record of Rs. 6,557 per sq ft for development of 5.22 lakh sq ft on a 1.37-acre plot. This is the highest-ever price being paid for development rights in GIFT City.
On this occasion, Deep Vadodaria, Director at NSL said, “We are looking to invest around Rs 750 crores in the project to be developed on this plot including the land development charges. The project is likely to be started in the next few months once we finalise the design and specific development plan”
Coming onto the company’s financial statements, the revenue decreased by 45 percent from Rs. 58.42 crores during the December quarter to Rs. 32.29 crores in the March quarter. On the other hand, the net profits declined by 81 percent from Rs. 11.63 crores to Rs. 2.18 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 10.52 percent and a return on capital employed (RoCE) of 15.95 percent for the period spanning FY22-23. Further, the net profit margin for FY23-24 stood at 14.94 percent.
According to the latest shareholding pattern, the Promoters retain 61.90 percent ownership, FIIs hold 0.89 percent of shares and the remaining 37.21 percent of shares are in the hands of Retail Investors.
Headquartered in Ahmedabad, Incorporated in 2000, Nila Spaces Ltd ila Spaces Ltd does the development of real estate comprising residential and commercial projects. The company also offers residential apartments in premium, luxury, and signature categories.
Written By Vaibhav Patil
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