Synopsis: Emkay Global has initiated coverage on Ajmera Realty with a Buy rating, citing strong growth, improving financials, attractive valuation, and significant value from its land bank.
This small-cap realty stock, engaged in the development of residential, commercial, mixed-use, and redevelopment projects across key cities in India, with a strong presence in Mumbai and Bengaluru, is in focus after Emkay Global Financial Services gave a buy target with upside potential of 29.15 percent.
With a market capitalization of Rs. 2,666.58 crore, the shares of Ajmera Realty & Infra India Limited closed at Rs. 135.50 per equity share, down nearly 3.21 percent from its previous day’s close price of Rs. 140 per share.
What is the News?
Emkay Global Financial Services, a prominent brokerage firm, has recommended a “Buy” call on Ajmera Realty & Infra India Limited with a target price of Rs. 175 per share, indicating an upside potential of 29.15 percent from its current price of Rs. 135.50 per share.
Emkay Global has initiated coverage on Ajmera Realty & Infra India with a Buy rating, citing attractive valuation and significant development potential. The company has delivered a strong turnaround post-COVID, with pre-sales growing at a 24 percent CAGR between FY21 and FY26 to Rs. 17 billion.
Revenue and EBITDA also recorded 26 percent CAGR during the period, while the debt-to-equity ratio improved sharply from 1.13x in FY21 to 0.53x in FY26. Management has guided for FY27 pre-sales of Rs. 22 billion, implying 29 percent YoY growth.
The brokerage sees substantial value unlocking from Ajmera’s key land parcels in Kanjurmarg and Wadala. The 62-acre Kanjurmarg project has an estimated GDV of Rs. 256 billion and development potential of 8.3 million sq ft, while the Wadala land bank offers GDV of around Rs. 168 billion. Alongside monetizing these assets, the company is expanding through redevelopment projects and JDAs, having added projects worth nearly Rs. 50 billion GDV post-Covid, supporting long-term growth visibility.
Business Highlights
Ajmera Realty & Infra India Limited has built a strong presence in the Indian real estate sector with a total portfolio of 16.1 million square feet. The company has successfully completed projects covering 20.7 million square feet and has delivered over 46,000 homes to customers. Its long track record and focus on residential development have helped it establish a strong brand in key markets.
The company currently has 9 ongoing projects across Mumbai and Bengaluru, covering around 2.0 million square feet. In addition, it plans to launch 8 new projects in Mumbai, Pune, and Bengaluru, with a potential development area of 3.7 million square feet. Supported by a sizeable land bank with future development potential of 10.4 million square feet, Ajmera Realty is well-positioned for long-term growth.
Revenue Visibility
Ajmera Realty has strong revenue visibility from its existing and upcoming projects. The company expects revenue of around Rs. 4,108 crore from projects that have already received approvals and are currently under development. Of this, Rs. 4,042 crore is expected from ongoing projects over the next 48 months, supported by both committed sales and unsold inventory.
In addition, Ajmera Realty has a strong pipeline of future launches with a revenue potential of approximately Rs. 6,324 crore. Combining ongoing projects and planned launches, the company has a total revenue potential of about Rs. 10,432 crore. This healthy project pipeline provides good earnings visibility and supports the company’s growth prospects over the coming years.
Ajmera Realty & Infra India Limited is an Indian real estate development company headquartered in Mumbai, Maharashtra. It is part of the Ajmera Group, one of India’s longstanding business conglomerates, and is known for large-scale residential and mixed-use developments. The company has expanded from housing projects in Mumbai to multiple cities in India and abroad.
Recent Quarter Results
Coming into financial highlights, Ajmera Realty & Infra India Limited’s revenue has increased from Rs. 151 crore in Q4 FY25 to Rs. 431 crore in Q4 FY26, which has grown by 185.43 percent. The net profit has also grown by 145.83 percent from Rs. 24 crore in Q4 FY25 to Rs. 59 crore in Q4 FY26.
Ajmera Realty & Infra India Limited’s revenue and net profit have grown at a CAGR of 26 percent and 38 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 14.3 percent and 11.5 percent, respectively. Ajmera Realty & Infra India Limited has an earnings per share (EPS) of Rs. 7.61, and its debt-to-equity ratio is 0.51x.
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