 "Lancor Holdings jumps nearly 7% after signing redevelopment MoU in Chennai")
Shares of Chennai headquartered real estate developer Lancor Holdings jumped nearly 7% on the NSE in intra-day trades, after the company said that it has signed a memorandum of understanding (MoU) with many of the owners of a re-development project, named 'Lancor Ananya'.
The company, in an exchange filing, said the re-development project will have a total built-up area of 85,337 sq. ft, and the company expects to begin work on the project after receiving the required RERA and other approvals.
It said, "The company has concluded by signing the Memorandum of Understanding (MOU) with many of the owners of a re-development project named as “Lancor Ananya” having a total built-up area of 85,337 sq.ft in prime residential area in the city. The works on this project will commence after receipt of RERA and approved plans."
At 11:30 AM, shares of the company were trading at Rs 48, compared to the BSE Sensex, which was trading at 81,131, up marginally by 0.10 per cent. Shares of Lancor Holdings had touched an intraday high of Rs 49, during the day's trade.
Lancor Holdings is involved in the construction of commercial and residential development projects in Chennai for more than 37 years. It has built well-known projects in the city, including The Atrium, Westminster, Menon Eternity, and a large-scale development in Sholinganallur under “The Central Park” name.
Apart from developing big projects in the suburbs of Chennai, the company has now intensified its play of re-developing many of the city's projects through joint development efforts.
This has reduced the capital required by the company in terms of investment in land assets, along with spreading the risks associated with the real estate business across several projects without compromising on margins in any significant way.
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Moreover, Lancor had reported revenues of Rs 138.3 crore for the full financial year 2023-24, compared to revenues of nearly Rs 115 crore in the previous year.
The company had also posted a net profit of Rs 6.75 crore in FY2023-24, compared to a net loss of nearly Rs 34 lakh in the preceding year.
However, Lancor Holdings' stock price has given negative returns of 1.18 per cent in the past month, compared to the BSE Sensex's gain of 7.53 per cent during the same period.
That apart, the company's stock has appreciated 17 per cent in the year-to-date period, compared to the BSE Sensex's gain of a little over 12 per cent in the same period.