Shares of this real estate development company surged around 4 percent on Monday after the company reported a remarkable 96 percent YoY increase in revenue and strong net profit growth in its recent quarterly results.
Share Price Movement
In Monday’s trading session, Max Estates Ltd share price reached an intraday high of Rs.569.00, a 3.8 percent increase from its previous close of Rs.548.30. The stock has delivered returns exceeding 100 percent over the past year.
What Happened
The bullish movement in Max Estates Ltd stock price is attributed to a rise in revenue and net profits for the recent quarter.
As per its latest filing for the quarter ending September 2024, Max Estates reported a 96 percent YoY revenue increase to Rs.40.2 crore, up from Rs.20.5 crore in Q2 FY24. On a QoQ basis, revenue saw a slight dip of 0.7 percent from Rs.40.5 crore in Q1 FY25.
In the same period, the company reported a notable 69 percent reduction in net losses, narrowing to Rs.1.4 crore in Q2 FY25 from Rs.4.5 crore in Q1 FY25 and down 30 percent from Rs.2 crore in Q2 FY24, indicating an improving trend in its financial performance.
Additionally, Total Lease Rental Income rose 96 percent YoY to Rs.53 crore in FY25. The company maintains a strong current ratio of 1.41 and a debt-to-equity ratio of 0.82.
Management Commentary
Sahil Vachani, Vice Chairman & Managing Director of Max Estates, commented on the company’s performance, “H1 FY25 has seen the execution of multiple strategic and operational initiatives aimed at scaling the business and enhancing our organisational capacity and capability for seamless growth as we expand our portfolio significantly.
I am very confident about the growth opportunities ahead that will further scale the business, supported by a strong balance sheet and available growth capital. We have a proven track record of judiciously deploying capital in business development, including approximately 7 million sq ft of development opportunities in H1 FY25 alone.”
Growth Pipeline
Max Estates has received NCLAT approval for the ‘Delhi One’ project in Sector 16B, Noida, which spans 34,697 sq. meters and offers a mixed-use development potential of 2.5 million sq. ft.
Set to launch in FY26, this project has a Gross Development Value (GDV) potential of over Rs.1,500 crores, with an annuity income potential of around Rs.120 crores from 1.2 million sq. ft. of leased inventory and about Rs.500 crores from sold inventory.
Additionally, a Joint Development Agreement for a residential project on 18.23 acres in Gurugram has helped secure 7 million sq. ft. of development opportunities valued at approximately Rs.11,300 crores in the first half of this financial year, exceeding the annual guidance of 3 million sq. ft.
Residential Launches
Estate 360, Max Estates’ first residential project in Gurugram, achieved a pre-sales booking value of Rs.4,100 crores, with 85% sold in 30 days, making it a standout launch in Delhi NCR. The fourth tower at Estate 128 in Noida, with a GDV potential of around Rs.800 crores, is set to launch in Q3 FY25 after approvals.
Consequently, Max Estates has revised its FY25 booking value guidance to Rs.4,800-5,200 crores, up from Rs.4,000 crores.
About the Company
Max Estates Ltd, established in 2016, is the real estate development arm of Max Group, focusing on sustainable commercial and residential projects in the Delhi NCR region.
Written by – Siddesh S Raskar
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