Multibagger Stock: Ajmera Realty records 190% return in one year, spiked over 580% in 3 years

Shares of Ajmera Realty & Infra India, one of India's leading real estate companies, have rewarded its shareholders handsomely as they consistently hit new record highs with each passing month. 

Over the past year, the stock has surged by nearly 190%, rising from ₹276.90 to the current market price of ₹802.60 per share. Notably, it has posted positive gains for 9 out of the last 12 months, with January and February showing the highest monthly returns of 31.53% and 26.28%, respectively.

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In the current year, the stock has seen a remarkable increase of 82.52%, marking its best yearly performance since CY17. This impressive rally is attributed to the company's strong financial performance in recent quarters, which has bolstered investor confidence in the company.

Zooming out, the shares have skyrocketed from ₹118 apiece to the current level, resulting in a whopping return of 585%. 

The company is in the business of providing residential and rented commercial properties. It has a presence in cities like Mumbai, Bengaluru, and Ahmedabad in India, as well as in international locations like Bahrain and the UK. 

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Primarily concentrating on luxury and mid-luxury residential projects, it holds significant development opportunities across its land parcels, notably at Ajmera I-Land, Bhakti Park, Wadala, and Central Mumbai.

Amid increasing disposable income and significant investments from Ultra High Net Worth Individuals (UHNIs) and High Net Worth Individuals (HNIs), the luxury residential market in India is experiencing robust growth. 

Builders are witnessing a surge in demand, with luxury flats selling out within hours of their launch, indicating a strong appetite in the Indian residential market.

Robust sales

On April 09, the company released its operational figures for Q4 FY24 and the full fiscal year, marking significant achievements. In Q4 FY24, the company achieved a sales value of INR 287 crore and collections of ₹197 crore, reflecting growth of 104% and 91%, respectively, compared to Q4 FY23. 

For the entire FY24, the company recorded its highest-ever sales value of ₹1,017 crore, marking a 21% improvement from the ₹842 crore reported in FY23. Additionally, collections in FY24 surged to ₹561 crore, representing a 6% year-on-year increase, according to the company's regulatory filing.

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During FY24, the company said it capitalised on industry growth and infrastructural advancements, resulting in tangible successes. It strategically added six projects to its pipeline, aligning with its low capex model and inorganic growth strategy. 

This expansion increased its launch pipeline to 1.3 million sq. ft. with a GDV of ₹3,130 crore, further solidifying its presence in various micro-markets within the MMR region. The company's sales momentum across the portfolio witnessed a significant upsurge, complemented by the successful launch of two projects valued at ₹500 crore GDV in the central belt of MMR.

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The company highlighted its operational excellence through its faster project execution strategy before RERA timelines. Notably, the company achieved the remarkable milestone of delivering 1,000 possessions across three projects within a span of 24 hours.

Outlook looks strong

According to a report titled "Indian Real Estate: A Decade from Now," released by Knight Frank India in collaboration with the Confederation of Indian Industry (CII), the Indian real estate sector is projected to reach a total value of approximately $1.5 trillion by 2034, accounting for 15% of the country's overall economic output. 

The residential segment is anticipated to lead this growth, with an estimated value of $906 billion, followed by the office sector contributing $125 billion, as reported by Hindustan Times. 

India's population is projected to reach 1.55 billion by 2034, with an anticipated 42.5% residing in urban areas. Knight Frank Research and CII estimates suggest that to accommodate this growing urban population, Indian cities will need an additional 78 million housing units by 2024–2034. 

By 2034, a significant portion of the population is expected to fall into the lower-middle and upper-middle-income brackets, driving demand for affordable housing initially and gradually shifting towards the mid-segment.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.