This smallcap real estate stock has zoomed 85% within 2 months

Shares of Ajmera Realty & Infra India (ARIIL) hit a new high of Rs 1,120, gaining 6 per cent on the BSE in Thursday’s intra-day trade on healthy outlook.

 

Since October 7, within two months, Ajmera Realty & Infra India stock price zoomed 85 per cent after the company reported stable business performance with sales value at Rs 254 crore in September quarter (Q2FY25), reflecting a sustained market demand. Collections rose significantly by 20 per cent year-on-year (YoY) to Rs 133 crore, indicating improved operational efficiency and strong customer demand.  Ajmera Realty & Infra India 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.   Fund raise  Meanwhile, the company has on boarded marquee investors in its equity raise of Rs 225 crore on preferential allotment basis and successfully closed its maiden private equity deal with domestic institutional investor.

 

 

On October 18, 2024, the company’s board had 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).

 

The board of directors of the company through its allotment committee passed on November 25, 2024, approved the allotment 3.16 million equity shares at Rs 711 per equity share to the allottees.

   

Bangalore project  Meanwhile, Ajmera Realty & Infra India’s Bengaluru project launch sees strong festive sales, books 37 per cent in Diwali week, ARIIL said.

 

The management said a robust pipeline comprising seven projects with a Gross Development Value of Rs 4,270 crore is set to launch, positioning the second half of FY25 for significant optimism and value creation. These developments collectively enhance the company’s prospects and stakeholder value, it added.

 

Overall, presales by listed players increased 6 per cent YoY in Q2FY25 and 34 per cent YoY in H1FY25. The Nifty Realty Index is up 8 per cent in FY25 YTD, outperforming the broader market indices by 4 per cent. This momentum is likely to sustain, due to mega ongoing & upcoming project launches (> Rs 1.2 trillion) across key markets & segments by industry leaders that are positioned to garner stellar demand, as per our checks, analysts at Elara Capital said in realty sector report.

 

Ajmera Realty & Infra India's core operating regions, namely Mumbai and Bengaluru, a myriad of opportunities awaits us, the management said. The infrastructure development initiatives in and around Mumbai have their own ripple effect in terms of enhanced scope for real estate sector.  Mumbai Trans Harbour Link, Atal Setu Bridge  The recent inauguration of the Mumbai Trans Harbour Link and the Atal Setu Bridge, coupled with the imminent opening of the coastal road and ongoing metro expansions, are catalysing substantial growth within the sector across various regions, the company said in its FY24 annual report.

 

Meanwhile, a sustained surge is observed in the real estate scene in Bengaluru, stimulated by a wide gamut of factors, including the thriving IT sector, burgeoning start-up ecosystem, persisting remote work trends, and ongoing infrastructure development.  The city is seeing a surge in the construction of high-end office spaces and expansive residential units to accommodate the demands of multinational corporations. With such positive developments, the Bengaluru market is well-poised for sustained growth in the future, the company said.