The shares of a small-cap real estate development company surged by 5.5% after the announcement of a new residential apartment project in Bengaluru, projected to generate revenue of Rs. 600 crores.
Share price variations:
With a market capitalization of Rs. 3,783.07 crores, Arvind SmartSpaces Ltd opened the trading session at Rs. 794.10 and made an intraday high of Rs. 837.60 up 5.5% from the previous close of Rs. 794.10 a piece.
Reason for the Rise:
As per the exchange filing, Arvind SmartSpaces Ltd has entered into a joint development agreement for a new residential apartment project on ITPL Road, near Whitefield, Bengaluru, with a total estimated saleable area of 4.2 lakh sq. ft. and revenue potential of Rs.600 crores. This will be the company’s 12th overall project and 8th high-rise development in Bengaluru.
Recent Projects:
As of August 2024, the company has ongoing projects across the states of Gujarat, Karnataka, and Maharashtra, spanning a total saleable area of 2.66 crore sq. ft. In Q2 FY25, it plans to launch new projects on NH 47 in South Ahmedabad, with an estimated revenue potential of Rs. 1,450 crores.
The company has four projects under approval in Bangalore and one project in Ahmedabad with a total revenue estimate of Rs. 1,265 crores.
Financial Performance:
For Q1FY25 the company reported a net profit decrease of 49.23% to Rs. 4.62 crores compared to Rs. 9.10 crores in Q1FY24, while revenue from operations marked an increase of 11.41% to Rs. 74.47 crores from Rs. 66.84 crores in comparison to the same period.
The share has given a return of 21.46% in the last 6 months and a multi-bagger return of almost 143% in the past year and in FY24 company had an ROE of 10.63 % and ROCE of 19.06 %.
About the company:
Incorporated in 2008, Arvind SmartSpaces is the real estate arm of the USD 2 billion Kasturbhai Lalbhai Group. The company has quickly emerged as a key player in the Indian real estate market, completing 7 projects within its first 8 years of operation. Arvind SmartSpaces has established a strong presence in the residential, industrial, and retail segments. It primarily undertakes projects in Gujarat, Karnataka, and Maharashtra.
Written By: Joseph Pv
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