resr 5paisa Research Team 7th September 2023

This small-cap real estate stock is on its way to becoming a multibagger of 2022; do you own it?

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In the last two years, the stock has risen 210%, logging its lifetime high on September 12. 

Part of Lilabhai Group, Arvind SmartSpaces is one of the fastest-growing businesses in its portfolio. The real estate player has shown a strong presence in the industry with a focus on high opportunity markets of Ahmedabad, Gandhinagar, Bangalore and Pune, primarily in residential space.

Shares of Arvind SmartSpace Ltd are surging fast as the stock registered its all-time high of Rs 300.05 on September 12, taking the weekly share price returns to 28.4%. In the last 3 months, shares of this real estate player have risen 80% while in the last one year the stock has gained 97.6%.

The company has displayed impressive growth since its inception in 2009. Having delivered 4.9 million square feet and with an ongoing project entailing 13.9 million sq feet, the company plans to add 7.2 square feet under various projects.

The company has reported a strong Q1 financial performance wherein the consolidated revenue jumped 124% YoY at Rs 60.26 crore. Net profit rose exponentially by 226% YoY and came in at Rs 7.4 crore. As on June 30, 2022, the company has 8 ongoing projects in Ahmedabad, Pune and Bangalore measuring 13.9 million square feet.  

The recent rally in the stock has been on the back of a partnership with HDFC Capital Affordable Real Estate Fund - 3 for the creation of a residential development platform announced last month. The platform will create an overall revenue potential of up to Rs 5,000 crore excluding reinvestment potential. Over the next 12 months, 6-7 projects are expected to be acquired through this platform.   

The shares of this smallcap real estate developer have significantly outpaced the benchmark S&P BSE Sensex which had increased by 4% in the last 1 year whereas S&P BSE Realty has risen by 14.6% in the same period.   

At 11.00 am, the shares of Arvind SmartSpaces are trading flat at Rs 289.75. 

It will be interesting to watch, how soon the stock price rallies beyond 100% to double the investor’s money in 2022. 

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