Shares of Puravankara Ltd (NSE: PURVA) jumped more than 2% on the NSE at the time of writing. The surge in price followed the company’s operational update for the September quarter.
The update reflected strong financial performance in the quarter as well as for the six months ended September 30, 2022. Growth was supported by the Indian economic boom and the positivity of the festive season.
With the rising demand in the real estate sector following the outperformance of the Indian economy, Puravankara remains optimistic for the festive season and continued business momentum, with planned investments.
Numbers in Detail
Puravankara reported 33% YoY growth in total sales to Rs 793 crore, reflecting the highest-ever sale “for the second quarter of any financial year since inception.”
Also, a consistent increase in average price realization was recorded. During the quarter, average prices rose by 12% YoY.
Remarkably, for the six months ended September 30, the highest-ever sale of Rs 1,306 crore was recorded by the company. This reflected a 43% jump from the prior-year comparable period’s figure of Rs 910 crore.
Snapshot
Puravankara, an Indian real estate company, provided a three-year return of more than 50%. Following the pandemic and global hues, the stock has suffered reflecting about a 31% fall in price over the past year, but recent business momentum in the real estate market is expected to act as a catalyst, depicted by the current operational update.
As a result, investors can consider the stock attractive at the recent dip based on its strong fundamentals, robust sales growth, dividend yield, and operational efficiency.
The company seems decently priced compared to its peers at current levels based on both EV/EBITDA and P/B ratios. This Small Cap company, with a market capitalization of Rs 2,184.15 crore, offers superior double-digit ROCE, strong returns, and long-term growth prospects.