Share price of a company engaged in the real estate business hit a new 52-week high at Rs. 12.70 and moved up by 4.95 percent in the morning trading session on Tuesday after the company announced receiving a Letter of Intent.
With a market cap of Rs. 500 crore, shares of Nila Infrastructures Ltd. opened at Rs. 12.65 on February 6th, compared to its previous close of Rs. 12.10.
The company has delivered positive returns of more than 144 percent in the last six months, compared to nearly 106.50 percent of positive returns in the last one year. So far in 2024, it has given around 42.70 percent of returns.
According to the recent filings on stock exchanges, Nila Infrastructures Ltd. received a Letter of Intent (LOI) from Ahmedabad Municipal Corporation (AMC) and is expected to execute in two years.
The project awarded to the company is for the construction and development of residential units and commercial shops by rehabilitating slums popularly known as ‘Gulbai Tekra’ in Ahmedabad, following the PMA Scheme and Slum Rehabilitation Scheme of the Government.
As per the filings, the project expects the construction and development of 854 residential units and 10 commercial shops for a total development cost of Rs. 99.08 crore.
Further, Nila Infrastructure shall get Transferable Development Rights (TDR) of Rs. 70.34 crore and Land Premium of Rs. 28.74 crore as a consideration to recoup the development cost.
In terms of financials, the revenue from operations of Nila Infrastructure grew by 60.3 percent from Rs. 24.43 crore in Q1 FY23-24 to Rs. 39.16 crore in Q2 FY23-24, accompanied by an increase in net profit by 978.26 percent to Rs. 2.48 crore in Q2 FY23-24 from Rs. 0.23 crore in Q1 FY23-24.
As of December 2023, FIIs hold 0.94 percent of the shares, whereas DIIs hold 37.17 percent of the shares in the company, aggregating to 38.11 percent of the institutional holdings. The Promoters’ holdings remain unchanged at 61.90 percent.
incorporated in 1990, Nila Infrastructures Limited is a flagship unit of the Ahmedabad-based Sambhaav Group and is one of Gujarat’s leading companies engaged in turnkey civic urban infrastructure development.
It is a public company based in Ahmedabad, Gujarat, and is involved in the construction as well as the development of infrastructure projects.
Written by Shivani Singh
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