Small-cap stock below ₹50: Shares of Eraaya Lifespaces edged nearly 5% higher in intraday deals on Monday, June 2, as the small-cap company posted a sharp sequential decline in its net loss during the March quarter (Q4) of the financial year 2024-25 (FY25).
Eraaya Lifespaces share price opened at ₹44.55, unchanged against its last closing price, and then jumped 4.96% to the day's high of ₹46.76, narrowly missing its upper price band of ₹46.77.
Eraaya, on Friday evening, posted a net loss of ₹6 crore in Q4 FY25 as against a net loss of ₹20.84 crore in Q3 FY25. However, the company had posted a net profit of ₹0.22 lakh in the same period a year ago.
On a quarter-on-quarter (QoQ) basis, the revenue from operations tumbled 89% to ₹1.88 crore from ₹16.99 crore in the same period last year. On the other hand, the figure was higher by 248% year-on-year (YoY) from ₹54 lakh in the year-ago period.
Apart from earnings, Eraaya Lifespaces board also approved expansion plans for the company.
"The Board has, in order to strengthen the company’s presence in emerging and futuristic business(es), granted its in-principle approval for an investment of up to ₹125 crores in such business(es)," the company said.
These businesses should align with the company's strategic roadmap for long-term value creation and its vision of enhancing synergy, promoting diversification and business presence, subject to the successful completion of due diligence, compliance with applicable statutory and regulatory frameworks, and receipt of all requisite approvals, if any.
Despite today's gains, Eraaya Lifespaces stock has been in a book-building mode in the last one year, shedding 38% of its value. In the past six months, the fall has been steeper as the small-cap stock tumbled 77%.
In the past one month, it is down 6% and on a year-to-date basis, Eraaya Lifespaces share price has lost 61%.
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