Ajmera realty stock has skyrocketed by 50% over the past two weeks and has surged by 107% so far in 2024
Ajmera Realty & Infra India recently achieved a major milestone as its shares soared to a record high of Rs 908.05, marking a 5% increase in intra-day trading on the BSE. This surge followed the company's board approval on October 18, 2024, for the preferential issuance of equity shares to investors Mukul Mahavir Agrawal and Authum Investment & Infrastructure.
As of 12:19 PM, the stock was trading at Rs 903.25, up 4%, contrasting with a slight decline of 0.3% in the BSE Sensex. Over the past two weeks, Ajmera Realty's shares have surged 50%, climbing from Rs 606 on October 7. In the broader context, the stock has more than doubled this year, rising by 107%, while the BSE Sensex has seen a more modest gain of 12%.
The board's decision involved the issuance of 3.16 million equity shares at an issue price of Rs 711 each, totaling Rs 225 crore. Investors in this allotment include Authum Investment & Infrastructure and Mukul Mahavir Agrawal, each receiving 759,493 shares, along with Anchorage Capital Scheme II and Prabhudas Lilladher Advisory Services Private Limited.
Authum Investment & Infrastructure specializes in providing loans and investing in shares and securities, holding stakes in companies such as Reliance Infrastructure and ADF Foods. Meanwhile, Mukul Mahavir Agrawal's portfolio includes investments in BSE, Neuland Laboratories, and Strides Pharma Science.
Ajmera Realty promotes significant development potential, particularly in key areas such as Ajmera I-Land, Bhakti Park, Wadala and Central Mumbai. The company is currently advancing several projects, including luxury residential developments like "Manhattan," "Prive," and "Eden" in Mumbai, alongside "Ajmera Lugaano" and "Ajmera Florenza" in Bengaluru. The focus on premium developments in the luxury and mid-luxury segments aligns with the growing demand in the real estate market.
Strong indicators within the real estate sector suggest sustained growth for Ajmera Realty. The company anticipates robust revenue generation from both ongoing and upcoming projects, with an expected Rs 116 crore from recently received occupancy certificates over the next six months and Rs 1,744 crore from ongoing projects over the next 30 months, as outlined in its FY24 annual report released on July 17, 2024.
Ajmera Realty's total revenue potential stands at an impressive Rs 6,430 crore, driven by existing projects and future launches. The company also holds a substantial land bank, particularly in Wadala and Kanjurmarg, providing ample opportunities for development.
Financially, Ajmera Realty is well-positioned to leverage these growth opportunities, ensuring sustained profitability and value creation. The company aims to achieve a fivefold growth trajectory by unlocking its land bank's development potential and pursuing low-capital expenditure acquisitions through joint ventures, joint development agreements or other collaborative efforts.
With an optimistic outlook, Ajmera Realty expects strong sales activity fueled by favorable policy measures, enhanced infrastructure and a supportive business environment. As the company continues to capitalize on the burgeoning real estate market, its strategic initiatives are set to drive influential growth and profitability in the coming years.
