This realty stock has surged 50% in 2 weeks; zoomed 107% thus far in CY2024

Ajmera Realty hit a new high of Rs 908, surging 5% after the company's board approved issue of equity shares to investor Mukul Mahavir Agrawal and Authum Investment & Infra on preferential basis.

Shares of Ajmera Realty & Infra India hit a new high of Rs 908.05, surging 5 per cent on the BSE in Monday’s intra-day trade after the company’s board approved issue of equity shares to investor Mukul Mahavir Agrawal and Authum Investment & Infrastructure on a preferential basis.

At 12:19 pm; the stock of the real estate company was trading 4 per cent higher at Rs 903.25, as compared to 0.3 per cent decline in the BSE Sensex. In the past two weeks, it has soared 50 per cent from a level of Rs 606 on October 7. Thus far in the calendar year 2024, the market price of Ajmera Realty has more than doubled or zoomed 107 per cent. In comparison, the BSE Sensex gained 12 per cent during the same period.

 

The company’s board on Friday, October 18, 2024 approved the issue and allotment of 3.16 million equity shares on preferential basis at an issue price of Rs 711 per share aggregating to Rs 225 crore.

The proposed allottee includes, Authum Investment & Infrastructure and Mukul Mahavir Agrawal (759,493 shares each), Anchorage Capital Scheme II (281,293) and Prabhudas Lilladher Advisory Services Private Limited (70,323).

Authum Investment and Infrastructure is primarily engaged in the business of providing loans and making investments/trading in shares and securities. The company holds shares in Reliance Infrastructure, Welspun Corp, Shyam Metalics and Energy, ADF Foods, Reliance Power and others. Mukul Mahavir Agrawal holds stake in BSE, Neuland Laboratories, Nuvama Wealth Management, Radico Khaitan, Strides Pharma Science and others.

Meanwhile, Ajmera Realty has a huge development potential available on its balance land parcel at Ajmera I-Land, Bhakti Park, Wadala and Central Mumbai. Current projects are at Mumbai: “Manhattan”, “Prive” and “Eden” along with various projects at Bengaluru: “Ajmera Lugaano” and “Ajmera Florenza”. The Company is focused on premium developments in luxury and mid-luxury projects in the residential segment.

With strong growth indicators in the real estate sector, Ajmera Realty anticipates sustained growth momentum. Revenue visibility from ongoing and upcoming projects remains robust, with OC received projects expecting to generate Rs 116 crore over the next 6 months and ongoing projects would be contributing Rs 1,744 crore over the next 30 months, Ajmera Realty said in its FY24 annual report dated July 17, 2024.

The company’s total revenue potential stands at Rs 6,430 crore, from existing and potential launches. Additionally, the company’s owned land bank presents significant development potential, particularly in Wadala and Kanjurmarg. Financially, the company is well-positioned to capitalise on these opportunities, ensuring sustained profitability and value creation.

The company aims to achieve a 5x growth trajectory through unlocking its land bank development potential and low-capex acquisitions such as joint ventures (JVs), joint development agreements (JDAs), or development agreements (DAs). The company maintains an optimistic outlook, expecting strong sales activity supported by dynamic policy measures, improved infrastructure, and a positive business environment, it added.