Ajmera Realty & Infra India Ltd is in focus after Emkay Global Financial Services initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs. 175 per share.
Based on the stock’s closing price of Rs. 135.50, the target implies an upside potential of 29.15 percent.
With a market capitalisation of Rs. 2,666.58 crore, the stock ended Thursday’s session down 3.21 percent from the previous close of Rs. 140.
Emkay Sees Scope for Value Unlocking
According to Emkay Global, the company has delivered a strong turnaround since the pandemic.
Between FY21 and FY26:
- Pre-sales grew at a CAGR of 24% to Rs. 17 billion.
- Revenue recorded a CAGR of 26%.
- EBITDA also grew at a CAGR of 26%.
- Debt-to-equity improved from 1.13x to 0.53x.
Management has guided for FY27 pre-sales of Rs. 22 billion, which implies 29 percent year-on-year growth.
Land Bank Seen as a Key Growth Driver
The brokerage highlighted two major land parcels as potential value drivers.
Kanjurmarg project
- Land area: 62 acres
- Development potential: 8.3 million sq. ft.
- Estimated gross development value (GDV): Rs. 256 billion
Wadala land bank
- Estimated GDV: Around Rs. 168 billion
Emkay said monetisation of these assets, along with expansion through redevelopment projects and joint development agreements (JDAs), could support long-term growth.
Since the pandemic, the company has added projects with an estimated GDV of nearly Rs. 50 billion.
Project Portfolio
Ajmera Realty has completed projects spanning 20.7 million sq. ft. and has delivered more than 46,000 homes.
Its total portfolio currently stands at 16.1 million sq. ft.
Ongoing projects
- Number of projects: 9
- Locations: Mumbai and Bengaluru
- Area under development: 2 million sq. ft.
Planned launches
- Number of projects: 8
- Locations: Mumbai, Pune and Bengaluru
- Development potential: 3.7 million sq. ft.
The company also has a land bank with future development potential of 10.4 million sq. ft.
Revenue Visibility Remains Strong
Ajmera Realty expects revenue of around Rs. 4,108 crore from projects that are under development and have received approvals.
Of this:
- Rs. 4,042 crore is expected from ongoing projects over the next 48 months.
- Future launches carry revenue potential of around Rs. 6,324 crore.
Total revenue potential
- Ongoing projects: Rs. 4,108 crore
- Upcoming launches: Rs. 6,324 crore
- Combined revenue potential: About Rs. 10,432 crore
Q4 FY26 Performance
The company reported strong growth during the March quarter.
Q4 FY26 vs Q4 FY25
| Particulars | Q4 FY26 | Q4 FY25 | Growth |
|---|---|---|---|
| Revenue | Rs. 431 crore | Rs. 151 crore | 185.43% |
| Net profit | Rs. 59 crore | Rs. 24 crore | 145.83% |
Over the last five years:
- Revenue has grown at a CAGR of 26%.
- Net profit has grown at a CAGR of 38%.
Key financial metrics
- ROCE: 14.3%
- ROE: 11.5%
- EPS: Rs. 7.61
- Debt-to-equity ratio: 0.51x
Ajmera Realty & Infra India Ltd, part of the Ajmera Group, develops residential, commercial and mixed-use projects and has a strong presence in Mumbai and Bengaluru.
TL;DR
Emkay Global has initiated coverage on Ajmera Realty with a ‘Buy’ rating and a target price of Rs. 175, implying a potential upside of 29%. The brokerage cited strong growth, lower leverage and value from the company’s land bank.
AI Summary
- Emkay Global initiated coverage with a target price of Rs. 175.
- The target implies a 29.15% upside from Rs. 135.50.
- FY27 pre-sales guidance stands at Rs. 22 billion.
- Kanjurmarg and Wadala projects offer significant development potential.
- Q4 FY26 revenue and net profit rose 185% and 146%, respectively.