Synopsis:
The shares of this company jumped 14 percent after the company announced its Q2 results which highlighted an 89 percent growth in pre-sales and 111 percent growth in carpet area sold.
The shares of this company which is a real estate construction firm that develops residential and commercial real estate in the South Central Mumbai region witnessed a massive surge in its share price as the company declared a robust growth in its operational segment.
With the Market cap of Rs 1,419 crore, the shares of Suraj Estate Developers Ltd Skyrocketed 14 percent and made a high of Rs 318.3 compared to its previous day close of Rs 279.3. The share is trading at a PE of 15.4 whereas its median PE is 25.
Q2 Result highlights
Pre-sales growth has increased by 89 percent QoQ and 42 percent YoY to Rs 153 crore, while carpet area sold increased 111 percent QoQ and 57 percent to 34,875 sq. ft. in Q2FY26, driven by successful launches of Suraj Aureva and Parkview 1 Both projects witnessed strong demand, with over 40 percent of inventory sold during the quarter.
However the PAT stood at Rs 33.1 crore as per Q2 FY26 compared to Rs 31.8 crore in Q2 FY25 and Rs 21.3 crore in Q1 FY26 which is 4 percent and 55.5 percent growth YoY and QoQ basis respectively.
Total Revenue has increased by 9.2 percent QoQ and 32.6 percent YoY to Rs 145 crore, while EBITDA grew 30.4 percent QoQ and 2.5 percent YoY to Rs 65.6 crore in Q2FY26 . EBITDA margin increased from 37.7 percent to 45 percent on a QoQ basis but has reduced compared to Q2 FY25 margin of 58 percent.
About the company and outlook
The company has several ongoing residential projects going on in Mumbai which includes projects in Dadar west, Mahim, Prabhadevi. The company’s clientele includes ICICI bank, Axis Bank, NSE, Edelweiss, GAIL and many more.
The company’s key business strategy involves enhancing the market leading position in SCM, continuing to pursue different product offerings in the luxury segment, expanding land reserve in SCM and other MMR sub markets , and continuing to focus on redevelopment projects through asset light models.
Suraj Estate Developers is a real estate firm that has been transforming Mumbai’s landscape for over 39 years, building luxury and commercial projects in coveted locales.The company specializes in redevelopment projects, holding a 61 percent share in SCM’s redevelopment market. It has expertise in settling tenants, with over 1,011 homes redeveloped free of cost. It has launched 263 projects in SCM sub-markets, with 160 projects categorized as redevelopment.
Written by Leon Mendonca
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