Shares of a prominent South India-based residential real estate developer surged nearly 7 percent following the signing of a Joint Development Agreement (JDA) for a prime 6-acre land parcel in Pune for a project having a revenue potential of approximately Rs. 700 – Rs. 750 crore.
Share price variations:
With a market capitalization of Rs. 1,837.26 crores, Shriram Properties Ltd. rose to an intraday high of Rs. 111.30 representing a 6.9 percent increase from its previous closing price of Rs. 104.05 per share.
Reason for the Rise:
According to exchange filings, Shriram Properties Ltd has signed a Joint Development Agreement for a 6-acre land in Pune’s emerging Undri micro-market. The Company plans to develop a mixed-use development with over 650 apartments and retail and commercial spaces, covering a saleable area exceeding 1.0 million sq. ft., over the next 4 years. This project has a revenue potential of approximately Rs. 700-750 crore, with a targeted launch in H2 FY25, marking the Company’s entry into the Pune market.
Recent Projects:
In September the company launched a new apartment project under the Codename – Pudhiya Chennai in West Chennai with a revenue potential of around Rs 550-600 crores.
In May the company signed a Joint Development Agreement (JDA) for the development of a 4-acre land parcel in Yelahanka, Bengaluru with a revenue potential of over Rs. 250 crores
Financial Performance:
For Q2FY25 the company reported a net profit increase of 5.5 percent to Rs. 17.46 crores compared to Rs. 16.62 crores in Q1FY24, while revenue from operations also marked an increase of 14 percent to Rs. 153.96 crores from Rs. 135 crores in comparison to the same period.
About the company:
Shriram Properties is a part of Shriram Group is one of the leading residential real estate development companies in South India primarily focused on the mid-market and affordable housing categories. They commenced operations in Bengaluru and expanded their presence to other cities in South India, i.e., Chennai, Coimbatore, and Visakhapatnam. In addition, they also have a presence in Kolkata in East India, where they are developing a large mixed-use project.
The company has a strong pipeline of 42 projects with 42 million.square.feet of saleable area, including 26 ongoing projects with 24.3 million.square.feet of saleable area as of June 30, 2024. Nearly 75% of ongoing projects are already sold and the Company has ‘zero inventory’ in completed projects.
Written By: Joseph Pv
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