Arvind SmartSpaces extends gains for third consecutive session

Arvind SmartSpaces surged 8.50% to Rs 305.65, extending gains for third day in a row.

The stock has added 17.54% in three sessions, from its recent closing low of Rs 260.05 recorded on 23 December 2022.

On the technical front, the stock's daily RSI (relative strength index) stood at 67. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On daily chart, the stock is trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 267, 251.69 and 216.95, respectively.

Arvind SmartSpaces (ASSL) said that India Ratings and Research has affirmed the company's long-term rating at 'IND A' and the outlook on the same is 'positive'.

India Ratings said that the affirmation reflects Arvind SmartSpaces' strong credit metrics, due to a continued robust operating performance (pre-sales and collection) with limited reliance on debt to fund its projects since FY21.

The 'positive' outlook continues to reflect the agency's expectation of ASSL maintaining healthy presales growth, the successful launch of new projects and strong traction in the same while maintaining comfortable credit metrics.

It also reflects the agency's expectation of ASSL's ramp-up in the project pipeline such that there is more diversification of revenues over the next two years.

India Ratings further stated that a steady growth in the scale of operations along with geographical diversification, leading to healthy cash flows and strong sales momentum, while maintaining strong credit metrics on a sustained basis, will be positive for ratings.

Headquartered in Ahmedabad, Arvind SmartSpaces is the real estate arm of Lalbhai Group. ASSL is primarily focused on the development of residential projects. Its residential projects comprising villas, apartments and plots are targeted towards middle income and high-income customers. Its existing integrated townships comprise executive golf course with villas, apartments, retail, commercial and recreational areas. It also undertakes commercial and industrial projects on a selective basis. ASSL has completed 3.8 million sf of projects, while 14.9 million sf projects are under construction and around 6.6 million sf projects are under pipeline.

The company's consolidated net profit surged 79.18% to Rs 4.82 crore on a 95.72% increase in sales to Rs 50.34 crore in Q2 FY23 over Q2 FY22.

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