Shares of this multibagger real estate stock hit the 5 percent upper circuit in Wednesday’s trading session after the company successfully bagged a redevelopment project in Mumbai, Maharashtra with a gross development value (GDV) of over Rs 2,000 crores. In the past month, the company’s stock gained a whopping 80 percent for its holders. 

With a market capitalization of Rs 8,940.54 crores, the stocks of Puravankara Limited started their trading session on Wednesday at Rs 371.90 and currently are locked in the 5 percent upper circuit recorded at Rs 377 apiece. 

Such bullish share price behavior was observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that the company was selected as a preferred developer for a redevelopment project in ‘Pali Hill’, a premium location in Bandra, Mumbai with property rates ranging from Rs 1 lakh to Rs 1.20 lakh per sq ft. 

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The project has an estimated development potential of carpet area across 4.10 lakh sq ft, with over 2.15 lakh sq ft available for sale, and possesses a Gross Development Value (GDV) of over Rs 2,000 crores. 

Moreover, the company is presently in the advanced stages of discussions for the redevelopment of three to four prestigious housing societies in Mumbai. 

During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profits, reported positive movements with the former increasing from Rs 368 crores during Q2FY24 to Rs 574 crores during Q3FY24, and the latter, keeping the timeframe the same, transitioned from losses of Rs 11 crores to profits of Rs 78 crores. 

According to the latest presentations, the company’s revenue mix as of Q3FY24 portrays regional contributions from some of the metropolitan cities in India, viz, contribution of around 52 percent from Bengaluru, 27 percent from Chennai, 9 percent from Kochi, and the remaining contributions from other cities within the country. 

Keeping a purview of the last six months, the company’s stock has proven to deliver multibagger returns of approximately 180 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.80 lakhs.

Founded in 1975, Puravankara Limited is engaged in the business of developing as well as constructing residential & commercial properties. The company’s residential projects include commercial projects, residential projects, villas, townhouses, and many more. Additionally, it also offers interior designing services. 

Written by Amit Madnani 


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