 "Puravankara locked at 5% upper circuit on securing redevelopment project")
Real estate company Puravankara shares were locked in 5 per cent upper circuit on Wednesday. The shares hit an intraday high of Rs 377 per share.
The surge came after Puravankara announced that it has been selected as the preferred developer for redeveloping a residential housing society in Mumbai’s Pali Hill.
In an exchange filing, Puravankara said, “We write to inform you that the company has been unanimously selected as the preferred developer for redeveloping a residential housing society in Pali Hill, Mumbai.”
Pali Hill is a premium address in Bandra West, with property rates ranging from Rs 1 lakh to Rs 1.20 lakh per sq ft.
The project has a cumulative estimated development potential of 4.10 lakh sq ft carpet area, with over approximately 2.15 lakh sq ft available for sale, and a potential Gross Development Value (GDV) of over Rs 2,000 crore, the company said in a statement.
Puravankara claimed that the residential society is spread slightly over two and a half acres and is one of the largest in the micro‐market.
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The company is in advanced stages of discussions for the redevelopment of three to four other prestigious housing societies in Mumbai, it added.
Notably, shares of Puravankara have zoomed 79.40 per cent in the past month, and a staggering 181.03 per cent in the past year. The share has jumped 101.23 per cent year-to-date (YTD).
Financial performance
Puravankar’s net profit zoomed 266 per cent to Rs 78 crore in the December quarter (Q3FY24), from Rs 22.5 crore in Q3FY23.
The Bengaluru-based company’s sales grew 56 per cent to Rs 1,241 crore for the December quarter due to strong sales volume of 1.63 million sq ft, up 60 per cent year-on-year (Y-o-Y) with a strong collection of Rs 941 crore.
Operating cash inflows for the first nine months (9M) of financial year 2023-24 (FY24) soared 35 per cent on an annual basis to Rs 2,826 crore.