Puravankara share price surges 8% after subsidiary bags ₹272 crore contract

Puravankara, a leading real estate developer in India, witnessed an 8% surge in its share price during Thursday's trading session on June 19, reaching ₹301.25 apiece and on course to snap a seven-day losing streak, if trend persists. 

The rebound came after the company announced that its wholly owned subsidiary—Starworth Infrastructure & Construction, which focuses on tech-driven EPC solutions—had received a Letter of Intent for civil and finishing works for the proposed residential apartment project “TRU AQUAPOLIS” in Varthur, Bengaluru, from Tru Dwellings Private Limited.

According to the company’s exchange filing, the total value of the contract stands at ₹272 crore.

Meanwhile, domestic brokerage firm Emkay Global Financial has retained its 'buy' rating on the stock with a target price of ₹400 apiece following the company’s March quarter results. Although pre-sales in FY25 were weak due to delays in approvals, the brokerage expects strong pre-sales growth in FY26E and FY27E, driven by key project launches lined up for FY26.

The company began FY26 on a strong note by announcing a strategic joint venture with KVN Property Holdings LLP to develop a 24.59-acre land parcel in North Bengaluru's KIADB Hardware Park.

With an estimated gross development value (GDV) of over ₹3,300 crore and a saleable area of 3.48 million square feet, the project further strengthens the group’s launch pipeline and regional presence.

The company expects to receive occupancy certificates (OCs) for key projects like Atmosphere, Oakshire, and Capella in Bengaluru and Adora De Goa in Goa during FY26. These projects cover a total saleable area of 3.95 million square feet and carry a total GDV of ₹3,200 crore. This is expected to drive handovers and revenue recognition in the upcoming quarters.

In FY25, the company achieved pre-sales of ₹5,006 crore, with a sales volume of 5.67 million square feet. It also recorded a 10% year-on-year increase in sales realization to ₹8,830 per square foot. Collections for the year stood at ₹3,937 crore, reflecting a 9% growth over the previous year.

Puravankara share price trend

After maintaining a steady upward trend from March 2023 to June 2024, the stock came under pressure for the following 10 months. However, it regained momentum in May, closing the month with a 14% rally. The upward trend has extended into June, with the stock up another 9% so far.

Looking at the long-term performance, the stock has gained 255% over the past three years and 620% over the past five years.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.