Ajmera Realty Announces 1:5 Stock Split; Shares Under Pressure Despite Positive Revenue Growth
Ajmera Realty & Infra India Ltd, a prominent real estate developer, announced on Thursday, November 6, that its board has approved a stock split in the ratio of 1:5. This means that one equity share of the company, which currently has a face value of ₹10, will be divided into five equity shares, each with a face value of ₹2.
The company made this announcement alongside its March quarter results. The record date for the stock split will be communicated in due course, as stated in a regulatory filing.
Ajmera Realty reported a 14% year-on-year decline in its consolidated net profit to ₹30.4 crore for the September quarter, compared to ₹35.3 crore in the same period last year. Despite this decline, revenue grew by 10% to ₹219 crore from ₹199 crore a year ago, driven by steady project execution.
Operating performance, however, saw a marginal weakening. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) slipped by 2.5% to ₹58 crore, and margins narrowed to 26.4% from 29.8% in the year-ago period.
Following the announcement of the stock split, shares of Ajmera Realty & Infra India Ltd are trading about 4% lower at ₹1,016. The stock has also seen a 10% decline on a year-to-date basis.
The stock split is expected to make the shares more accessible to a broader range of investors, potentially increasing liquidity and trading volume. However, the immediate market reaction suggests that investors are cautious, possibly due to the company's financial performance metrics and broader market conditions.
Ajmera Realty & Infra India Ltd is a leading real estate company known for its diverse portfolio of residential, commercial, and infrastructure projects. The company's decision to split its stock underscores its commitment to shareholder value and its strategic plans for growth and expansion.
Investors and market analysts will be closely watching the company's future performance and the impact of the stock split on its share price and overall market position.