Rs. 6.30/Share Interim Dividend: Realty Stock Sets Record Date; Buy?

As of Wednesday's BSE closing session, Puravankara Ltd., a small-cap company in the real estate industry, has a market valuation of Rs 5,791.20. Yesterday, Puravankara's shares hit a new 52-week high of Rs 250 a share, and they closed the day 10.55% higher at Rs 244.20. The spike in stock price occurred as the company released its Q3 earnings and announced an interim dividend for FY24.

Puravankara Dividend

For the fiscal year 2023-24, the company's Board of Directors recommended the payment of an interim dividend of Rs. 6.30/- per share with a face value of Rs. 5 each. "The interim dividend shall be paid on or before Thursday, February 8, 2024, to those shareholders whose name stands on the Register of Members of the Company as on the Record Date i.e. Thursday, February 1, 2024," said Puravankara in a regulatory filing.

Puravankara Financials

In Q3FY24, the firm reported a profit of Rs 78 crores, boosting 266 per cent year on year. In Q3FY24, sales reached Rs 1,241 crores, up 56% year on year. The quarter's sales volume was 1.63 million square feet, up 60% year on year, and the excellent collection of Rs 941 crores, up 52% year on year, was recorded. For the 9MFY24, operating cash inflows were Rs 2,826 crores, up 35% YoY, and operating revenue was Rs 596 crores, up 45% YoY. Operating surplus was Rs 965 crores at the end of 9M FY24, up 101% YoY. During the quarter, the company unveiled one new phase for Parkhill in Bengaluru and two new projects: Provident Deansgate in Bengaluru and Purva Soukhyam in Chennai.

Mr Ashish Puravankara, Managing Director, Puravankara Limited, said, "The results declared for Q3FY24 and 9MFY24 mark a significant milestone in our operational journey. Our total revenue increased by 45 per cent to INR 596 crores. Our net profit for the quarter stood at 78 crores, up by 266 per cent year on year. Our pre-sales reached Rs 3,967 crores in 9MFY24, demonstrating our consistent growth and effective expansion strategy. The notable 52 per cent Y-o-Y increase in collections highlights our commitment to operational efficiency and customer satisfaction."

"Complementing our operational success, we have also reduced our net debt by Rs 251 crores with significantly improving collections and cash balance. The company is well poised for investments in new acquisitions across regions, with increased liquidity and cash flows enhancing the growth momentum. We are excited and encouraged with our foray into the Mumbai redevelopment market with our first project of approximately 6 lakh sq ft and a potential GDV of Rs 1,500 crores. We are actively pursuing 12 opportunities and are shortlisted with advance discussions ongoing with four societies," he further added.

"Our net debt stood at Rs 1,741 crores, reduced by Rs 251 crores from the previous quarter. The net debt-to-equity ratio stood at 0.85 for Q3FY24. The weighted average cost of debt stood at 11.49 per cent as of 31 December 2023," said Puravankara in a regulatory filing.

Puravankara Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said Puravankara Limited (PURVA) is currently trading at 238 levels, showcasing a notable uptrend from the support levels around 215, in close proximity to its 20 Day Exponential Moving Average (EMA). The stock's positive momentum is further confirmed by its positioning above the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMA levels, reinforcing its technical resilience.

A significant breakthrough above the resistance at 235, supported by robust volumes, underscores the stock's strength. A sustained closure above this resistance could potentially propel the stock to the next target of 270. Traders and investors who entered at lower levels are advised to safeguard their positions by trailing stop losses near 215, aiming for the target of 270 and beyond.

The momentum indicator, Relative Strength Index (RSI), is currently at 64 levels, indicating positive momentum in the stock. For those considering fresh investments, purchasing at the current market price (CMP) is a viable option, targeting 270, with a stringent stop loss set at 215 levels to manage risk effectively.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.