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Ajmera Realty gains on targeting sales of Rs 5000 cr in next 3-5 yrs

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Capital Market
Last Updated : Apr 19 2022 | 1:04 PM IST

Ajmera Realty & Infra India rose 1.69% to Rs 389.20 after the company said it targets sales value realization of Rs 5000 crore in the next three-five years.

Ajmera Realty & Infra India announced its plans to launch six projects during the FY 2023 & FY 2024 itself, which has a revenue potential of about Rs 4,000 crore. The developer will be launching 5 new projects in Mumbai and 1 new project in Pune.

The Mumbai-based listed realty developer has estimated to clock in sales worth about Rs 5,000 crore in the next 3-5 years from its future launches as well as its existing projects. The funding for all these new projects to launch will be via a mix of internal accruals, bank funding and sales advances.

Among the upcoming projects in Mumbai, 4 will be residential and 1 will be a mix use category. In Pune, it will be residential category. The projects will be developed on the land parcels owned by the company. The cumulative estimated saleable area of the upcoming projects will be around ~2.7 mn sq ft.

Mumbai projects will constitute around ~2.4 mn sq. ft. and the remaining saleable area will be from Pune's upcoming project.

The company plans to move towards inorganic growth, through low capex acquisition in the form of Joint Venture (JV) / Joint Development Agreement (JDA) / Development Agreement (DA) model in future.

Ajmera Realty & Infra India said it expect to accrue revenue of about Rs 1,000 crore from its existing projects in Mumbai and Bengaluru. Over Rs 144 crore is expected to be realized in the next 3 months from the advance stage projects. The mid-stage projects are estimated to constitute Rs 727 crore over the next 3 years. Estimated sale value of Rs 100+ crore from Nucleus Bangalore - commercial project of 1.28 lakh sq. ft, which is strategically moved from rental based cash flow model to an outright sale model.

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Dhaval Ajmera, Director, Ajmera Realty & Infra India said, "As Indian economy emerge from the disruption caused by the pandemic, the consumption led economy will take center-stage in the country. The real estate sector has shown resilience that is evident from the monthly sales data of the key cities. The commissioning of the upcoming transit infrastructure across Mumbai and MMR provides new opportunities. The group will make efforts to achieve a sustained growth momentum with optimum operational efficiency."

Ajmera Realty & Infra India has a PAN India presence along with an international presence in locations viz. Bahrain and London. The company has a huge development potential available on its balance land parcel at Mumbai, Bengaluru and Ahmedabad.

On a consolidated basis, net profit of Ajmera Realty & Infra India rose 22.91% to Rs 9.71 crore on 42.78% decline in net sales to Rs 69.07 crore in Q3 December 2021 over Q3 December 2020.

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First Published: Apr 19 2022 | 12:50 PM IST

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