Arvind SmartSpaces surges 3% on bookings worth Rs 500 cr for Aqua City

Shares of Arvind SmartSpaces jumped up to 3 per cent at Rs 865 per share on the BSE in Thursday’s intraday trade. Arvind SmartSpaces share price gained after the company announced bookings of over Rs. 500 crore at Arvind Aqua City, its largest township development to date, launched towards the end of September.

“Including the selective pilot phase of Rs. 93 crore in Q1, Arvind Aqua City has achieved total bookings of Rs. 600 crore. The township project is India's largest private man-made lake spanning 33 acres, three man made islands, and other thoughtful amenities, making it a standout in the Indian real estate market,” the company said in a statement on Thursday. 

Aqua City, located 30 km from Ahmedabad near Kalyangadh on the Ahmedabad-Rajkot Highway, offers a blend of plots and villas. Notable features include an 18-hole golf course spanning 38 acres, a 50,000 sq. ft. lakeside clubhouse, and a complex of 11 temples resembling the Kashi Ghat, including a Jain Derasar, all within the development.

Kamal Singal, Managing Director & CEO of Arvind SmartSpaces, said, "The market is ready for developments that go beyond traditional real estate, and we see immense potential for growth in this segment. Brand ‘Arvind’ continues to resonate strongly with homebuyers and we look forward to sustaining our bookings momentum throughout the remainder of the year.”  

In late September, domestic brokerage firm Axis Securities initiated coverage on Arvind SmartSpaces, calling it one of the fastest growing real estate companies, holding a dominant market share in Ahmedabad and Bangalore.

The brokerage gave a ‘Buy’ rating to the firm with a target price of Rs 1,085 a piece. This implies a 25.4 per cent upside relative to its current market price.  

“Our recommendation is supported by new launch visibility; asset–light business and quick turnaround time, geographical play and product innovation, and low leverage plus strong cash flows combined with strategic partnership,” analysts at Axis Securities said.

The brokerage said that the real estate firm has significantly expanded its project portfolio since the demerger in FY15 and currently has a planned pipeline of projects spanning 47.97 million sqaure foot (Mn sq ft), bringing its total book size to 75.47 Mn sq ft.

Approximately 72 per cent of its projects follow an asset-light approach. The company’s unsold inventory stands at 51 Mn sq ft from completed, ongoing, and planned projects, representing around 69 per cent of its total portfolio, indicating strong launch visibility and booking potential for the upcoming year.

Moreover, ASL has guided for a gross development value of Rs 5,000 crore in FY25. With unutilised funds of Rs 600 crore from the HDFC platform and the ability to comfortably raise Rs 300 crore in debt, along with internal cash flows, the company has the total cash visibility of Rs 1,000 crore. This positions ASL to achieve its guidance of 30 per cent-35 per cent growth in business development, analysts said. 

Share price history

Arvind SmartSpaces’s share price has outperformed the market as it shot up 99.8 per cent year to date, while surging 147.4 per cent in the last one year. In comparison BSE Sensex has risen 12.9 per cent year to date and 23.5 per cent in a year. 

The company has a total market capitalization of Rs 3,920.42 crore. Its shares are trading at price to earnings valuation of 77.54 times with an earning per share of Rs 10.83. 

At 2:07 PM, the stock price of the company advanced by 3.04 per cent at Rs 865 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.28 per cent to 81,691.29 level.