Suraj Estate Developers' Shares Surge 14% on Strong Q2 Results
The shares of Suraj Estate Developers Ltd, a real estate construction firm that develops residential and commercial properties in South Central Mumbai, witnessed a significant surge in its share price following the announcement of its Q2 results. The company reported a robust growth in its operational segment, leading to a 14% jump in its share price, reaching a high of Rs 318.3 compared to its previous close of Rs 279.3. The company's market cap currently stands at Rs 1,419 crore, and it is trading at a PE of 15.4, lower than its median PE of 25.
Q2 Result Highlights
Suraj Estate Developers' Q2 results were particularly impressive. Pre-sales grew by 89% quarter-on-quarter (QoQ) and 42% year-on-year (YoY) to Rs 153 crore. The carpet area sold increased by 111% QoQ and 57% YoY to 34,875 square feet. This growth was driven by the successful launches of Suraj Aureva and Parkview 1, both of which saw strong demand, with over 40% of inventory sold during the quarter.
The Profit After Tax (PAT) for Q2 FY26 stood at Rs 33.1 crore, marking a 4% growth YoY and a 55.5% growth QoQ from Rs 31.8 crore in Q2 FY25 and Rs 21.3 crore in Q1 FY26, respectively. Total revenue increased by 9.2% QoQ and 32.6% YoY to Rs 145 crore, while EBITDA grew by 30.4% QoQ and 2.5% YoY to Rs 65.6 crore. The EBITDA margin improved from 37.7% to 45% on a QoQ basis, although it was lower than the 58% margin in Q2 FY25.
About the Company and Outlook
Suraj Estate Developers has several ongoing residential projects in Mumbai, including developments in Dadar West, Mahim, and Prabhadevi. The company's clientele includes notable institutions such as ICICI Bank, Axis Bank, NSE, Edelweiss, and GAIL. The company's key business strategy involves enhancing its market-leading position in South Central Mumbai (SCM), pursuing different product offerings in the luxury segment, expanding its land reserve in SCM and other MMR sub-markets, and focusing on redevelopment projects through asset-light models.
Suraj Estate Developers has been transforming Mumbai's landscape for over 39 years, specializing in luxury and commercial projects in coveted locations. The company has a 61% share in SCM’s redevelopment market and has expertise in settling tenants, with over 1,011 homes redeveloped free of cost. It has launched 263 projects in SCM sub-markets, with 160 of them categorized as redevelopment.
The company's strong performance and strategic focus on redevelopment projects position it well for future growth. Investors are optimistic about the company's prospects, given its track record of successful project launches and strong demand in the market.
