Arkade Developers' share gains over 4% after promoter increases stake

Shares of smallcap real estate firm Arkade Developers surged over 4 percent in intra-day trade on Tuesday, March 11, following a promoter’s stake acquisition. The rally came after Amit Mangilal Jain, the company’s promoter and director, acquired 1,00,000 equity shares, representing a 0.05 percent stake, through an open market transaction. Jain’s purchase was executed at an average price of ₹148.22 per share, as per regulatory disclosures.

Promoter Stake Acquisition Details

According to the filing, prior to the transaction, Jain held 12,35,57,808 equity shares, translating to a 66.55 percent stake in the company. On March 10, 2025, he bought an additional 1,00,000 equity shares through a market purchase valued at ₹1,48,22,000. Post-acquisition, his holding increased to 12,36,57,808 shares, raising his stake to 66.60 percent.

The transaction was executed through the National Stock Exchange of India, and the company was notified on the same day. Additionally, the filing confirmed that there were no derivative trades executed by the promoter or any other designated person.

Stock Price Movement

The stock climbed as much as 4.4 percent to an intra-day high of ₹158.55 following the disclosure. Despite recent volatility, Arkade Developers remains 16.4 percent below its 52-week high of ₹190.00, recorded in September 2024. However, it has gained over 23 percent from its 52-week low of ₹128.30, touched in November 2024.

The stock has rebounded in March, gaining over 11 percent after witnessing losses in the previous two months. It declined by 13.5 percent in February and 7.5 percent in January.

Financial Performance

The Mumbai-based developer posted a net profit of ₹50.1 crore for the third quarter of the financial year 2025 (Q3 FY25), reflecting a 2.5 percent year-on-year (YoY) growth. The company attributed this modest rise to strong pre-sales achieved over the last few quarters, whose revenue was recognized in the nine months of FY25 (9M FY25).

Revenue from operations during the quarter stood at ₹231.4 crore, marking a nearly 20 percent YoY increase. Meanwhile, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹50 crore.

Arkade Developers also recorded pre-sales of ₹220 crore in Q3 FY25, up 93 percent YoY, with a total sale of 73,584 square feet of real estate. The company’s strong sales trajectory and increased promoter confidence could further bolster investor sentiment in the coming quarters.

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