Synopsis:
Suraj Estate Developers Ltd announced the acquisition of a prime land parcel in Lower Parel.The land will be merged with its adjacent Ambavat Bhavan project, expanding the saleable carpet area.
A real estate stock traded marginally higher after announcing the acquisition of a strategic land parcel in Mumbai’s Lower Parel. Investors reacted positively as the consolidation with its existing project is expected to unlock value and strengthen the developer’s presence in the value-luxury segment.
Suraj Estate Developers Ltd, with a market capitalisation of Rs. 1,548.81 crore, opened at Rs. 326.95 against its previous close of Rs. 324.25. The stock touched an intraday high of Rs. 327, marking a rise of 0.85 percent from the previous close.
What’s the News?
Suraj Estate Developers has acquired a 644 sq. meter land parcel at N.M. Joshi Marg, Lower Parel, for Rs. 6.44 crores, inclusive of stamp duty and registration. This land will be amalgamated with its adjacent Ambavat Bhavan project, creating a consolidated 1,310 sq. meter plot.
The combined project will yield a saleable carpet area of 0.32 lakh sq. ft. and a projected gross development value (GDV) of Rs. 130 crores. It will feature premium 1 and 2 BHK apartments in the value-luxury category.
Located in one of Mumbai’s most connected micro-markets, the project benefits from proximity to rail, Monorail, Eastern Freeway, and the Mumbai Coastal Road. The neighbourhood is also close to key healthcare, retail, entertainment, and commercial hubs of Lower Parel, Worli, and Prabhadevi.
Management Commentary
Commenting on the acquisition, Mr. Rahul Thomas, Promoter and Whole-Time Director of Suraj Estate Developers Limited, said, “This acquisition will strengthen our presence in the South-Central Mumbai’s value-luxury segment.
By integrating this land parcel with our upcoming Ambavat Bhavan project, we are creating a landmark development that blends superior design, premium amenities and sustainable value for our customers.”
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Financial Snapshot
On a quarter-on-quarter basis, sales declined 2.94 percent to Rs. 132 crore from Rs. 136 crore. Operating profit surged 66.67 percent to Rs. 50 crore from Rs. 30 crore. Profit before tax rose 7.69 percent to Rs. 28 crore from Rs. 26 crore, while net profit increased 16.67 percent to Rs. 21 crore from Rs. 18 crore.
Year-on-year, sales fell 1.49 percent from Rs. 134 crore to Rs. 132 crore. Operating profit dropped 20.63 percent from Rs. 63 crore to Rs. 50 crore. Profit before tax contracted 30 percent to Rs. 28 crore from Rs. 40 crore, while net profit declined 30 percent to Rs. 21 crore from Rs. 30 crore.
About the Company
Established in 1986, Suraj Estate Developers is a prominent real estate company in South-Central Mumbai with projects across Mahim, Dadar, Prabhadevi, and Parel, while expanding into Bandra. The company is known for value-luxury, luxury, and commercial developments, with strong expertise in tenant redevelopment under DCPR 33(7), leveraging negotiations to create value in high-density areas.
Written by – Manan Gangwar
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