Mumbai-Based Realty Stock Surges 5% on ₹250 Cr Housing Society Redevelopment Project
The shares of a Mumbai-based real estate company, Modis Navnirman Ltd, surged 5% following the announcement of a ₹250 crore redevelopment project for BOI Staff Sheetal Co-operative Housing Society in Borivali West. The company, known for its focus on redeveloping old residential societies and delivering new residential projects in and around Mumbai, saw its market capitalization rise to ₹675 crore, with shares hitting an intraday high of ₹360, a 5% increase from the previous day’s closing price of ₹343. The company currently trades at a PE ratio of 34.2, slightly lower than the industry average of 34.8.
Modis Navnirman Limited has secured a significant redevelopment order worth ₹250 crore in the real estate sector from the housing society segment in Mumbai. The project involves the redevelopment of the BOI Staff Sheetal Co-operative Housing Society in Borivali West, with a plot size of approximately 3,924.91 square meters. Borivali, an established residential micro-market, is expected to provide strong demand visibility for the project.
One of the key strengths of this mandate is the high degree of execution certainty. The housing society has already obtained 79A statutory consent, and all 100% of its members have given unanimous consent for the appointment of Modis Navnirman as the developer. Such unanimous support is often a strong indicator of confidence in the developer’s execution capabilities, particularly for a project located in the Mumbai slums.
Strategically, an ₹250 crore GDV (Gross Development Value) project will enhance Modis Navnirman’s medium-term revenue visibility and position the company favorably in the constrained supply market of Mumbai’s real estate. This project will also bolster the company’s credibility, enabling it to take on larger redevelopment projects in the future. Modis Navnirman’s revenue from operations in H1 FY26 stood at ₹83 crores, a significant 124% increase from ₹37 crores in H1 FY25. Similarly, the net profit surged to ₹12 crore in H1 FY26, up from ₹5 crore in H1 FY25, representing a 140% year-over-year growth.
The company’s success is underpinned by its “asset-light” and partnership-driven model of redevelopment, which helps maintain lower land costs and ensures positive margins, especially in MHADA, SRA, and Society Redevelopment schemes. Modis Navnirman’s focus on metropolitan areas of Mumbai, such as Malad, Kandivali, and Borivali, and its targeting of the mid and “aspirational” segments, aligns well with the sustainable demand for urban housing.
Additional factors contributing to the company’s growth include the strategic location of its projects in infrastructure-linked areas, the capacity to scale up in high-rise and mixed-use developments, and the macro-trend driver of increasing urban housing demands. These elements collectively position Modis Navnirman as a strong player in the Mumbai real estate market, poised for continued growth and expansion.
