The real estate stock saw a 7% rise, reaching a 52-week high price of ₹375 per share, following the signing of a binding agreement for a residential development opportunity in Gurugram, with a Gross Development Value of Rs 9,000 Crore.
At 11:45 a.m., On Friday, Max Estates Ltd shares were trading at Rs 368.80 a share on the National Stock Exchange, up Rs 18 or 5.13 percent, and the company has a market capitalization of Rs 5,357 crores.
According to a recent exchange filing by the company, Max Estates Limited (Max Estates), the real estate division of the Max Group, has finalized binding agreements for a potential Group Housing Residential development spanning 18.23 acres of land in Gurugram.
The project is estimated to have a Gross Development Value (GDV) exceeding Rs 9,000 Crore, covering approximately 4 million square feet of development area.
This land parcel adjoins Max Estates’ existing 11.80-acre plot on Dwarka Expressway in sector 36 A, Gurugram, where the company had previously entered into a Joint Development Agreement (JDA) last year.
Max Estates planned to launch Delhi NCR’s first Intergenerational residential community in the third quarter of the calendar year 2024, with a GDV potential of Rs 4,000 Crore.
Max Estates Ltd, a prominent real estate development arm of the Max Group, is a leading player in the Delhi-NCR real estate market. The company has curated a diversified real estate portfolio across various asset classes in the region, including a strategic partnership with New York Life Insurance Company (NYL) for its commercial office platform.
Geographically, the company undertakes a majority of its projects in Delhi at 59%, followed by 39% in Gurgaon and 3% in the Noida region.
Max Estates Ltd recently demerged from Max Ventures and Industries to operate as a separate entity solely focused on real estate. Shareholders of Max Ventures and Industries Limited (MaxVIL) received 1 equity share of Max Estates Limited for each equity share of MaxVIL.
In terms of shareholding patterns for the March quarter, the company’s promoters hold a 49.51% stake, while Foreign Institutional Investors hold 27.61% and retail investors hold 22.69%.
The company experienced a 17% year-on-year decrease in revenue, dropping from Rs 29 crore in Q3FY23 to Rs 24 crore in Q3FY24. Concurrently, the net profit for the same period declined from Rs 5.46 crore to a loss of Rs 8.20 crore.
Max Estates Ltd has two under-construction commercial office projects, including Max Square Two adjacent to Max Square and a project on the main Golf Course Extension Road, marking its foray into the commercial office segment in Gurugram.
On the residential front, the company successfully launched and sold its first project in Delhi NCR in CY 2023, Estate 128, located in Noida. The second residential project is set to be launched in the first half of CY 2024 in Gurugram.
Written by Omkar Chitnis
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