Puravankara Ltd's Redevelopment Rights Acquisition Sends Stock Soaring
Puravankara Ltd's shares clock 5% upper circuit after acquiring redevelopment rights of Miami Apartments in South Mumbai, marking its entry into the uber-luxury market.
Puravankara LtdRedevelopment RightsMiami ApartmentsSouth MumbaiReal EstateReal Estate MumbaiSep 13, 2024
This acquisition marks the company's entry into the uber-luxury South Mumbai market, where rates are estimated to be in the range of Rs 1,25,000 and Rs 1,40,000 per sq. ft. The project is expected to be a significant milestone for Puravankara Ltd, showcasing its commitment to delivering unparalleled luxury and reinforcing its vision to create iconic living spaces in the most coveted locations.
In just six months, the stock has delivered more than 150 percent return to its shareholders. With a market capitalization of Rs. 10,806 crores, the shares of Puravankara Ltd started Friday's trading session on a higher note at Rs. 456.95, clocking a 5 percent upper circuit compared to its previous close of Rs. 435.20 apiece.
The company has also strengthened its presence in Lokhandwala, Andheri West, following a November 2023 acquisition of redevelopment rights for two societies covering 3 acres. The company has now been selected as the preferred developer for four more societies, totaling around 1.30 acres.
Furthermore, Puravankara has signed a Joint Development Agreement (JDA) for a 1.95-acre land parcel in the Electronics City micro-market, which will have a saleable area of 2,60,000 square feet. This location is strategically positioned near the Kudlu Gate Metro Station, enhancing its accessibility to social infrastructure.
Frequently Asked Questions
What is the significance of Puravankara Ltd's acquisition of redevelopment rights of Miami Apartments?
The acquisition marks the company's entry into the uber-luxury South Mumbai market, where rates are estimated to be in the range of Rs 1,25,000 and Rs 1,40,000 per sq. ft.
How has the stock performed in the last six months?
The stock has delivered more than 150 percent return to its shareholders in just six months.
What is the company's plan for future developments?
The company is actively acquiring land to support future developments and is looking to launch new projects in key locations such as Whitefield and Sarjapur in Bengaluru, Kelambakkam near Chennai, and Khondwa in Pune.
What are the company's key financial metrics?
The company reported a Return on Equity (RoE) of 2.24 percent and a return on capital employed (RoCE) of 20.30 percent for the period spanning FY23-24. Furthermore, the net profit margin during FY23-24 was 2.24 percent.
What is the company's background?
Puravankara Limited is a leading Indian real estate development company founded in 1975 and headquartered in Bangalore. The company operates in the residential and commercial sectors, having developed projects in multiple cities across India.
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