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Business News/ Markets / Stock Markets/  Puravankara shares gained over 33% this week, biggest weekly jump since Nov 2017; here's why
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Puravankara shares gained over 33% this week, biggest weekly jump since Nov 2017; here's why

Puravankara share price surged 10% to ₹324.30 per share, resulting in a 33.68% gain for the week, the largest weekly increase since November 2017. Yes Securities in its latest report has initiated coverage on the stock with a 'buy' rating and set a target price of ₹452 apiece.

Multibagger Stock: Over the last one year, the Puravankara shares have spiked from ₹79 apiece to the current trading price of ₹324, resulting in a stellar return of 310%. (Mint)Premium
Multibagger Stock: Over the last one year, the Puravankara shares have spiked from 79 apiece to the current trading price of 324, resulting in a stellar return of 310%. (Mint)

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.

Also Read: TCS Q4 Results: Company reports net profit at 12,434 crore, revenue at 61,237 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. 

Also Read: Multibagger Godrej Properties- 4 key reasons why Jefferies sees more than 18% upside for the stock

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. 

Also Read: Metals: Rebound in global manufacturing activity pushes prices high

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.

Also Read: Macrotech Developers yielded 160% return in a year, gained over 400% in 3 years

 

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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Published: 12 Apr 2024, 06:24 PM IST
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