Ajmera Realty Sees Strong Growth Amid Positive Market Sentiments
Ajmera Realty & Infra India Ltd has recently showcased impressive performance in the stock market, reflected by a surge of over 6% in share prices during Wednesday’s trading session. This uptick is largely attributed to the release of positive business updates for the July-September quarter, highlighting the company’s resilience and growing market presence. In Q2 of FY25, Ajmera Realty reported remarkable sales amounting to ₹254 crores, along with collections reaching ₹133 crores, representing year-on-year growth of 1% and 20%, respectively, compared to Q2 FY24.
Stock Performance and Market Analysis
Opening at ₹648.65 on BSE, Ajmera Realty’s stock achieved an intraday high of ₹675.45, while dipping to a low of ₹643.45 throughout the day. According to Rajesh Bhosale, Equity Technical and Derivative Analyst, the stock has demonstrated strong positive traction, especially after maintaining critical support levels around ₹600. The analyst suggests that a level of ₹720 should be monitored as the next key resistance point.
Consolidation Phase and Future Outlook
However, not all analysts share a bullish outlook. Ruchit Jain, Lead Research Analyst at 5paisa, indicates that Ajmera Realty’s share price is currently undergoing a phase of consolidation, implying a time-wise correction. He notes that the stock has support within the ₹600 to ₹550 range and expects the stock to maintain range-bound movements for the time being.
Q2 Business Highlights
The company’s Q2 performance has been stellar, evidenced by a significant 20% rise in collections year-over-year. This growth reflects improved operational efficiency and high demand from customers. Sales across the entire portfolio have remained robust, confirming sustained interest in current projects. Notably, the luxury properties Ajmera Manhattan and Ajmera Prive have garnered impressive responses, indicating a rising consumer interest in premium real estate offerings.
New Market Ventures
In addition, the recently launched Ajmera Vihara project in Bhandup has already achieved a 49% sales milestone, showcasing the company’s ability to successfully penetrate new market segments.
Strategic Directions and Economic Context
According to Dhaval Ajmera, Director of the company, the strength of sales from existing projects, coupled with several new launches planned for the second half of FY25 during the festive season, boosts confidence in achieving the annual growth targets. The ongoing initiatives support Ajmera Realty’s ambitious growth strategy in the evolving real estate sector.
Impact of RBI’s Monetary Policy
Nitin Bavisi, CFO of Ajmera Realty, shared insights regarding the recent RBI Monetary Policy, noting that the decision to maintain the repo rate is in line with expectations. The shift to a ‘Neutral’ policy stance indicates a potential low-rate environment, which, alongside decreasing inflation and ample liquidity, is favorable for the real estate market. Enhanced liquidity translates to increased purchasing power for prospective homebuyers, creating a conducive atmosphere for growth in the sector.
Prospects for Demand Surge
Bavisi further emphasizes that a shift in the monetary policy is likely to initiate a rate-easing cycle sooner, setting the stage for positive consumer sentiment. The Indian real estate market is on a steady upward trajectory, with expectations for further intensification of demand correlating with the forthcoming festive season.
Disclaimer: The insights and opinions shared are based on the perspectives of various market analysts and should not be considered as investment advice. It is recommended to consult certified financial experts prior to any investment decisions.
