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Puravankara Shares Surge on Strong Q3 Sales Update
Shares of real estate developer Puravankara Ltd. surged as much as 11% on Wednesday, January 14, propelled by a bullish third-quarter business update. The company's financial performance in the December quarter showed significant year-on-year growth, signaling a potential turnaround for the stock.
Q3 Sales Momentum
Puravankara reported a substantial 17% year-on-year increase in sales value for the third quarter, reaching ₹1,414 crore. This growth outpaced the September quarter's performance by 7%. Collections, a key indicator of buyer confidence and project cash flow, also saw a healthy 22% increase from the previous year, totaling ₹1,140 crore. Sequentially, collections were up by 9%.
The sales area expanded by 4% year-on-year, although it declined from the previous quarter to 1.49 million square feet. Average real estate realizations were a bright spot, growing 12% compared to the same period last year, reaching ₹9,500 per square foot.
Expansion and Project Pipeline
Further bolstering its growth prospects, Puravankara highlighted significant new developable area additions. The company has added over 12.76 million square feet with an estimated Gross Development Value (GDV) of ₹13,900 crore in the first nine months of the fiscal year. These include strategic land acquisitions in Bengaluru and Mumbai, such as a large 53.5-acre parcel in Anekal Taluk, Bengaluru, and redevelopment projects in prime Mumbai locations like Malabar Hill.
Adding to the positive momentum, Puravankara's wholly-owned subsidiary, Starworth Infrastructure and Construction Ltd., secured a letter of intent for a significant residential project in Bengaluru valued at ₹311.18 crore. The order involves the construction of the Sattva AANGANE project, spanning approximately 3.04 million square feet, expected to be executed over 37 months.
Market Reaction
The stock's sharp rise on Wednesday helped it snap a five-day losing streak. Puravankara shares touched an intraday high of ₹256.78 apiece. Despite this recent surge, the stock has seen a considerable decline of 25.2% over the past year, indicating that investors will be closely watching for sustained growth and execution to recover prior losses.