Suraj Estate Developers share price jumped 5% in early trade on Thursday after the company announced that its subsidiary acquired a major land parcel in Mumbai. The multibagger small-cap stock, Suraj Estate Developers shares rose to an intraday high of ₹706.95 apiece on the BSE.
The real estate company Suraj Estate Developers, through its wholly-owned subsidiary Iconic Property Developers Pvt Ltd, has acquired a vacant parcel of land measuring ~ 1,464 square meters situated at Senapati Bapat Marg, Mahim (W), Mumbai.
The total consideration paid for the land parcel was ₹101 crores, said the company, adding that the entire consideration along with stamp duty and registration charges has been fully paid.
The said plot of land upon development will have an estimated RERA Carpet area of 1.03 lakh square feet with a gross development value (GDV) of around 525 crores.
The new plot is located adjacent to an existing vacant land acquired earlier by the company, also for the development of a commercial building. The said two plots upon amalgamation will have a combined plot area of approximately 3,000 square meters which is estimated to have a sale RERA Carpet area of 2.10 lakh square feet with an estimated GDV of ₹1,000 crores, Suraj Estate Developers said in a BSE filing.
“This acquisition fulfills the objectives of the funds raised through issue of equity shares and share warrants on preferential basis amounting to ₹343 crore. Our operational performance in the last quarter has also been exceptional, marked by a 14% increase in sales volume and a 10% rise in sales realization. Looking at the growing demand for commercial spaces given the strategic location of the land, we are confident about the success of the project,” said Rahul Thomas, Executive Director, Suraj Estate Developers.
Suraj Estate Developers Financials
In the second quarter of FY25, Suraj Estate Developers reported an 88% jump in its consolidated net profit to ₹31.8 crore from ₹16.9 crore in the year-ago quarter. Total income of the company in Q2FY25 rose by 5.7% year-over-year (YoY) to ₹109.6 crore, while EBITDA improved by 1% to ₹64 crore and EBITDA margin expanded to 58.4%.
The company achieved a 26% YoY growth in pre-sales for Q2FY25. Collections grew by 89% YoY during the September quarter and 46% YoY in H1FY25, driven by increased sales and collections from the commercial project CCIL.
Suraj Estate Developers Share Price Trend
Suraj Estate Developers shares have seen a strong growth this year. The small-cap stock has jumped 98% in six months and has given multibagger returns of over 108% year-to-date (YTD).
Suraj Estate Developers share price made a stock market debut on December 26, 2023. The real estate stock was listed at ₹340 per share on NSE, a discount of 5.55% to the issue price of ₹360. On the BSE, Suraj Estate Developers stock was listed with a 4.5% discount at ₹343.80 apiece.
The small-cap stock is up 108% from its listing price. It hit a record high of ₹842.00 apiece on August 20.
At 9:55 am, Suraj Estate Developers shares were trading 2.33% higher at ₹689.00 apiece on the BSE.
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