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Shares of Arvind SmartSpaces jumped as much as 3 per cent to Rs 865 per share on the BSE during intraday trade on Thursday. Arvind SmartSpaces share price rose after the company announced bookings of over Rs. 4,000.500 crore at Arvind Aqua City, its largest township development so far, launched towards the end of September.
“Including the selective pilot phase of Rs. 1,000,000.93 crore in the first quarter, Arvind Aqua City achieved a total bookings of Rs. 600 million. The township project is India’s largest man-made lake covering 33 acres, three man-made islands and other thoughtful amenities, making it a star performer in the Indian real estate market,” said the company in a press release.
Aqua City, located 30 km from Ahmedabad near Kalyangadh on the Ahmedabad-Rajkot highway, offers a mix of land and villas. Notable features include an 18-hole golf course covering 38 acres, a 50,000 square foot clubhouse and an 11-temple complex resembling the Kashi Ghat, including a Jain Derasar, all within the development.
Kamal Singal, Managing Director and CEO, Arvind SmartSpaces, said, “The market is ripe for developments that go beyond traditional real estate, and we see immense growth potential in this segment. The “Arvind” brand continues to resonate strongly with buyers and we look forward to maintaining our booking momentum throughout the remainder of the year.
In late September, domestic brokerage firm Ax Securities initiated coverage on Arvind SmartSpaces, calling it one of the fastest growing real estate companies, with a dominant market share in Ahmedabad and Bangalore.
The brokerage has assigned a ‘Buy’ rating to the company with a target price of Rs 1,085 a piece. This implies an increase of 25.4 percent from its current market price.
“Our recommendation is supported by new launch visibility; “The asset-light business and fast turnaround time, geographic play and product innovation, and low leverage and strong cash flow combined with a strategic partnership,” Axis analysts said Securities.
The brokerage said the real estate company has significantly expanded its project portfolio since the Demerger in fiscal 2015 and currently has a planned pipeline of projects spanning 47.97 million square feet (MN SQ FT), bringing its size total book at 75.47 mn sq ft.
Around 72 percent of its projects follow an “Asset Light” approach. The company’s unsold inventory stands at 51 MN Sq Ft from completed, ongoing and planned projects, representing approximately 69% of its total portfolio, indicating strong launch visibility and booking potential for the coming year.
Additionally, ASL has targeted a gross development value of Rs 5,000 crore in FY25. With unutilized funds of Rs 600 crore from the HDFC platform and the ability to comfortably raise Rs 300 crore in debt, as well as internal cash flow, the company has the total cash visibility of Rs 1,000 crore. This positions ASL to meet its guidance of 30% to 35% business development growth, analysts said.
Stock price history
Arvind SmartSpaces’ stock price has outperformed the market as it has soared 99.8% year to date, while increasing 147.4% over the past year. In comparison, the BSE Sensex is up 12.9 per cent year-to-date and 23.5 per cent year-on-year.
The company has a total market capitalization of Rs 3,920.42 crore. Its shares are trading at a price/earnings ratio of 77.54 times with earnings per share of Rs 10.83.
At 2:07 p.m., the company’s share price rose 3.04 per cent to Rs 865 apiece on the BSE. In comparison, the BSE Sensex rose 0.28 per cent to the level of 81,691.29.
First publication: October 10, 2024 | 2:20 p.m. STI