Puravankara, a leading real estate developer in India, witnessed a surge in its share price, hitting the 10% upper circuit during today's trading session at ₹324.30 per share. This week marked a remarkable rally, recording a 33.68% gain, the largest weekly increase since November 2017.
The upward momentum began following the release of the Puravankara business update for Q4 FY24 and FY24, highlighting its record-breaking performance in FY24. The company achieved its highest-ever collections, totaling ₹5,914 crore, marking a substantial 90% increase from the previous fiscal year's ₹3,107 crore.
Furthermore, Puravankara reported its highest-ever annual customer collections from the real estate segment, amounting to ₹3,609 crore in FY24, a notable 60% increase year-on-year compared to ₹2,258 crore in FY23.
In Q4FY24, the company achieved its highest-ever quarterly sales value of ₹1,947 crore, marking a significant 93% increase compared to Q4FY23's ₹1,007 crore.
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As of December 31, 2023, Puravankara has successfully completed 83 projects spanning approximately 48 million sq ft across nine cities, including Bengaluru, Chennai, Hyderabad, Coimbatore, Mangaluru, Kochi, Mumbai, Pune, and Goa. The company's total land bank stands at around 41 million sq ft, with ongoing projects totaling approximately 29 million sq ft, as per the company's exchange filing.
In addition to the robust growth witnessed in FY24, the upward trajectory of the stock was further bolstered by Yes Securities' positive outlook on the company. The brokerage in its latest report has initiated coverage on the stock with a 'buy' rating and set a target price of ₹452 apiece.
The brokerage's optimistic outlook on the company is underpinned by several factors. The brokerage anticipates the company's presales to grow at a 20% CAGR over FY23–26E and highlights that the company's debt and debt coverage are well under control.
Additionally, the brokerage points out the company's strong track record of execution over the past decade, anticipates robust profit and loss (P&L) recognition in the next 5-7 years, and notes a significant shift in focus following the appointment of a new CEO.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.Additionally, the average price realization saw a 2% uptick to ₹7,916/sq ft during FY24 from ₹7,768/sq ft in FY23, attributed to an inventory mix between Purva, Provident Housing, and Purva Land brands.
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