Shriram Properties Stock Soars 7% After Acquiring 6-Acre Land in Pune
Shares of Shriram Properties, a prominent South India-based real estate developer, jumped nearly 7% after the company signed a Joint Development Agreement (JDA) for a 6-acre land parcel in Pune. The project has a revenue potential of Rs. 700-750 crore.
Shriram PropertiesReal EstatePuneJoint Development AgreementStock MarketReal Estate PuneOct 30, 2024
The share price of Shriram Properties rose to an intraday high of Rs. 111.30, representing a 6.9% increase from its previous closing price of Rs. 104.05 per share. The company has a market capitalization of Rs. 1,837.26 crores.
According to exchange filings, Shriram Properties plans to develop a mixed-use project on the 6-acre land, which will include over 650 apartments and retail and commercial spaces. The saleable area is expected to exceed 1.0 million square feet, and the development will span approximately 4 years.
This project marks Shriram Properties’ entry into the Pune market, a strategic move aimed at diversifying its portfolio and tapping into the growing demand for residential and commercial spaces in the region.
Recent Projects
Shriram Properties has been actively expanding its footprint across South India. In September, the company launched a new apartment project under the codename 'Pudhiya Chennai' in West Chennai, with a revenue potential of around Rs. 550-600 crore. In May, it signed a JDA for the development of a 4-acre land parcel in Yelahanka, Bengaluru, with a revenue potential of over Rs. 250 crore.
Financial Performance
For the second quarter of FY25 (Q2FY25), Shriram Properties reported a net profit increase of 5.5% to Rs. 17.46 crores, up from Rs. 16.62 crores in Q1FY24. Revenue from operations also saw a 14% increase to Rs. 153.96 crores, compared to Rs. 135 crores in the same period last year.
About Shriram Properties
Shriram Properties, part of the Shriram Group, is one of the leading residential real estate development companies in South India, focusing on mid-market and affordable housing categories. The company commenced operations in Bengaluru and has expanded to other cities in South India, including Chennai, Coimbatore, and Visakhapatnam. It also has a presence in Kolkata, where it is developing a large mixed-use project.
As of June 30, 2024, Shriram Properties has a strong pipeline of 42 projects with a total saleable area of 42 million square feet. Out of these, 26 projects are ongoing, covering 24.3 million square feet of saleable area. Approximately 75% of the ongoing projects are already sold, and the company has 'zero inventory' in completed projects.
Frequently Asked Questions
What is the revenue potential of the new project in Pune by Shriram Properties?
The new project in Pune by Shriram Properties has a revenue potential of approximately Rs. 700-750 crore.
By how much did the share price of Shriram Properties increase after signing the JDA?
The share price of Shriram Properties increased by nearly 7%, reaching an intraday high of Rs. 111.30.
What is the area of the land parcel acquired by Shriram Properties in Pune?
Shriram Properties acquired a 6-acre land parcel in Pune.
What are the other recent projects undertaken by Shriram Properties?
Shriram Properties recently launched a project in West Chennai under the codename 'Pudhiya Chennai' and signed a JDA for a 4-acre land parcel in Yelahanka, Bengaluru.
What is the financial performance of Shriram Properties for Q2FY25?
For Q2FY25, Shriram Properties reported a net profit increase of 5.5% to Rs. 17.46 crores and a 14% increase in revenue from operations to Rs. 153.96 crores.
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