The shares of the consultancy service provider gained up to 18 percent after the company received SEBI Approval for ‘ImpactR SM-REIT’.
With a market capitalization of Rs 393.93 crore, the shares of Rudrabhishek Enterprises Ltd were trading at Rs 227.15 per share, increasing around 17 percent as compared to the previous closing price of Rs 193.97 apiece.
Reason for Rise:-
Today, the company shares have seen bullish movement after Rudrabhishek Enterprises Ltd officially received registration for Small and Medium Real Estate Investment Trusts (SM REITS) by the Securities and Exchange Board of India (SEBI). This approval marks a significant milestone as it becomes the second SM Reit in India to receive this registration.
Moreover, with this registration, REPL will serve as the investment manager for ImpactR SM REIT, positioning the company at the forefront of an emerging sector that is set to revolutionize real estate investments for smaller investors
Financial Condition:-
Looking forward to the company’s financial performance, revenue zoomed by 4 percent from Rs 18.39 crore in Q1FY24 to Rs 19.13 crore in Q1FY25, but during the same period, net profit plummeted by 16 percent from Rs 3.15 crore to Rs 2.64 crore.
Market Opportunities:-
The Indian government’s focus on infrastructure development, particularly in Tier 2 and Tier 3 cities through initiatives like the Urban Infrastructure Development Fund (UIDF), presents significant opportunities for REPL. The company plans to expand its services in urban planning and water supply consultancy, aligning with government projects such as PMAY and Smart City Mission.
Ratio analysis:-
The company’s critical ratios show that the return on equity dipped from 11.47 percent in FY22-23 to 11.36 percent in FY23-24, while the return on capital employed magnified from 16.43 percent to 16.73 percent. The net profit margin (NPM) for fiscal year 23-24 is 13.97 percent.
Company Summary:-
Rudrabhishek Enterprises Limited operates in one reportable segment, consulting services and investments. It integrates a range of services to deliver end-to-end consultancy in diverse sectors.
Written by:- Abhishek Singh
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