Share price of this small-cap realty stock and one of the leading real estate developers in South India moved up by 3.8 percent on BSE to hit an intraday high at Rs. 125.9 in the trading session of Friday, after announcing the acquisition of a 4-acre land parcel in Bengaluru.
With a market capitalisation of Rs. 2,098.4 crore, the shares of Shriram Properties Limited moved up by 1.24 percent and closed in the green at Rs. 122.7, compared to its previous closing price of Rs. 121.2.
According to the latest regulatory filings in the stock exchanges, Shriram Properties Limited (SPL) announced the acquisition of a prime 4-acre land parcel nestled in the coveted micro market of Chandapura, close to Electronic City in Bengaluru.
This investment aligns with SPL’s vision to redefine living experiences by creating exceptional residential communities in emerging micro markets.
On this land parcel, SPL plans to build a landmark residential project, encompassing around 4 lakh square feet of aggregate saleable area, comprising ~350 meticulously designed apartments.
With a revenue potential of more than Rs. 250 crore, this project is expected to be built over the following three years, with the company targeting to launch it during FY25.
This property will provide easy access to tech parks and corporate hubs as well as a robust social fabric that includes prestigious schools, medical facilities, and a variety of retail experiences.
In terms of financials, the company’s revenue from operations grew by 25.6 percent from Rs. 176 crore in Q3 FY22-23 to Rs. 221 crore in Q3 FY23-24. However, the net profit declined by 18.2 percent from Rs. 22 crore in Q3 FY22-23 to Rs. 18 crore in Q3 FY23-24.
As of March 2024, FIIs hold 1.62 percent of the shares, whereas DIIs hold 2.38 percent of the shares in the company, aggregating to 4 percent of the institutional holdings.
The stock has delivered positive returns of nearly 87.8 percent in the last one year and around 20.4 percent returns in the last six months. However, it has given 1.09 percent of negative returns, so far in 2024.
Established in 2000, Shriram Properties Limited, a part of Shriram Group, is one of South India’s leading residential real estate development companies, majorly focused on the mid-market and affordable housing categories.
SPL has a strong pipeline of 47 projects, including 25 ongoing projects. Almost 75 percent of the ongoing projects have already been sold, and no material inventory exists in the stages or finished projects.
Written by Shivani Singh
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