Adlabs Entertainment gains after receiving clearance for township project

Adlabs Entertainment rose 4.8% to Rs 84 at 14:33 IST on BSE after a wholly-owned subsidiary of the company received locational clearance from the Maharashtra state government for developing a special township.

Meanwhile, the BSE Sensex was up 76.17 points, or 0.28%, to 27,243.04.

On BSE, so far 4.20 lakh shares were traded in the counter, compared with average daily volume of 34,276 shares in the past one quarter. The stock hit a high of Rs 86.15 and a low of Rs 80 so far during the day. The stock hit a 52-week high of Rs 178.90 on 3 August 2015. The stock hit a record low of Rs 68 on 29 February 2016. The stock had underperformed the market over the past 30 days till 5 July 2016, falling 2.55% compared with 1.45% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 10.65% as against Sensex's 9.10% rise.

The small-cap company has an equity capital of Rs 79.90 crore. Face value per share is Rs 10.

Adlabs Entertainment's wholly-owned subsidiary Walkwater Properties Private Limited (WPPL) has received locational clearance for developing a special township on part of surplus land owned by WPPL adjacent to the Imagica theme park located at Khalapur in Raigad district of Maharashtra. The is for 88 acres of land out of the total surplus land of approximately 138 acres held by WPPL. The company is in the process of obtaining approval for the balance surplus land as well.

The locational clearance marks a significant milestone towards monetisation of the surplus land owned by WPPL. The 10 kilometre radius around Khalapur where Imagica is located is witnessing sizeable real estate development with some large projects underway at a brisk pace by some marquee real estate companies. With the Navi Mumbai airport project and other infrastructure projects being put on the fast track by the government, it is expected that this corridor will become the epicentre development in the region.

On a consolidated basis, Adlabs Entertainment reported net loss of Rs 16.47 crore in Q4 March 2016, which was lower than net loss of Rs 31.15 crore in Q4 March 2015. Net sales rose 14.05% to Rs 54.96 crore in Q4 March 2016 over Q4 March 2015.

Adlabs Entertainment operates the Imagica theme park located at Khalapur in Raigad district of Maharashtra.

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