The shares of this real-estate stock gained 2 percent on the opening of the day on Tuesday as the company entered into a share purchase agreement to acquire stake in 3 hotels. 

At the day’s opening, the shares of DB Realty were trading at a share price of Rs 168 up 2 percent from its previous close price and the company has a market capitalization of 8,334 Cr. 

According to the company’s exchange filing, the company announced that it has entered into separate share purchase agreement on september 25, 2023 to acquire stake in 3 hotels i.e., Bamboo Hotel Global Centre (Delhi) Private Limited, Goan Hotels & Realty Private Limited and BD and P Hotels (India) Private Limited for more than 2,300 Cr, with plans to enter the hospitality sector. 

DB Realty will acquire 10,10,000 Class A equity shares of Bamboo Hotel for a consideration of 608.88 Cr, 78,250 equity shares of Goan Hotels for Rs 1410.68 Cr and 2,12,69,325 shares of BD and P Hotels for Rs 339.12 Cr. 

DB Realty has delivered multibagger returns of 117 percent in 6 months. A shareholder’s investment of Rs.1 lakh in the company would be worth Rs. 2.17 lakh after six months and the stock has delivered 40 percent returns in one year. 

DB Realty’s revenue increased by 218.21 percent from 219.43 Cr in FY22 to 698.24 Cr in FY23, accompanied by profits which decreased from 21.78 Cr to a loss of 90.01 Cr. 

As the company is into real-estate, due to the increase in operating expenses the profitability ratios of the company have gone down with return on equity (ROE) declining from 1.53 percent to -5.3 percent and the return on capital employed (ROCE) reducing from 9.53 percent to -0.12 percent. 

According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 58.97 percent stake and the Foreign Institutional Investors (FII) hold 2.34 percent. 

DB Realty is primarily engaged in the business of real estate construction, development and other related activities and most of its projects are based in Mumbai. 

Written by: Bharath K.S


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