Ashiana Housing stock skyrockets 19% after company sells 224 luxury flats in just 15 minutes

Ashiana Housing, one of leading real estate firms in India, saw its shares surge by 19% to reach a new all-time high of ₹398.75 apiece during today's trading session, before finishing the trade at ₹382.50 apiece, an uptick of 14.33%.

This impressive rally has propelled the stock to deliver multibagger returns, with an increase of 118.60% over the past year and an impressive surge of 186% over the span of three years.

The remarkable performance observed today follows an announcement made by the company on Saturday, revealing that it successfully sold 224 luxury flats in Gurugram for a staggering ₹440 crore within a mere 15 minutes of its launch, PTI reported. 

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"We are very happy with the incredible response to the Ashiana Amarah phase 3 launch. We started registration at 11 a.m., and we had received 800 cheques for 224 units by 11.15. In 15 minutes, it was oversubscribed four times," Ashiana Housing Joint Managing Director Ankur Gupta said.

He attributed the oversubscription to the company's brand value and execution track record.

The demand for luxury flats in India is on the rise, propelled by an increase in disposable income among the population. As individuals become wealthier, they are more inclined to invest in upscale residences that offer amenities and luxuries beyond what standard housing provides.

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This trend is particularly pronounced in major metropolitan areas like Mumbai, Delhi, and Bangalore, where affluent segments are willing to pay premiums for luxurious accommodations.

Additionally, shifts in lifestyle preferences contribute to the surge in demand for luxury flats. With globalisation, Indian consumers are exposed to global standards of living and aspire to modern, cosmopolitan lifestyles. This entails a desire for residences equipped with top-tier amenities for entertainment, fitness, and relaxation, all conveniently located within their living spaces.

Consequently, there is a growing preference for homes that offer high levels of comfort, convenience, and luxury to meet evolving lifestyle demands.

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In its Q4FY24 business update, the company reported a significant increase in the value of area sold, reaching ₹862.53 crore, marking a notable 98% improvement compared to ₹435.82 crore in the same quarter of the previous year. For the entire fiscal year of FY24, the value of area sold amounted to ₹1,798.22 crore, surpassing the FY23 figure of ₹1,313.43 crore.

Furthermore, in Q3 FY24, the company witnessed remarkable growth in net profit, surging more than threefold to ₹28 crore. Concurrently, net sales experienced a robust increase of 44% year-over-year, reaching ₹184 crore.

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