Shares of Puravankara Ltd surged more than 12% on Wednesday after the Bengaluru-based real estate developer reported double-digit growth in quarterly sales value and collections, snapping a five-day losing streak and briefly putting the spotlight back on a stock that has lagged the market over the past year.
The stock climbed as much as 12.4% to Rs 258.60 after Puravankara released its business update for the December quarter, showing a sharp pickup in demand, stronger cash collections and steady execution momentum.
Puravankara’s collections rose 22% year-on-year to Rs 1,140 crore in the December quarter, while sequentially they were up 9%, underscoring improving cash flows even as broader real estate sentiment has remained mixed.
The company reported apartment sales worth Rs 1,414 crore during the quarter, a 17% increase from a year earlier and a 7% rise from the September quarter. Sales area grew 4% from last year, though it dipped sequentially to 1.49 million square feet. Average realisations climbed 12% year-on-year to Rs 9,500 per square foot.
During the quarter, Puravankara handed over 1.23 million square feet, delivering 1,116 homes. For the first nine months of the year, total deliveries stood at 2.58 million square feet across 2,446 homes.
For the first nine months of the year, Puravankara added more than 12.76 million square feet of potential developable area, with an estimated gross development value of Rs 13,900 crore.
“These include marquee acquisitions across Bengaluru and Mumbai, such as a 53.5-acre land parcel in Anekal Taluk, Bengaluru; large-scale partnerships in North and East Bengaluru; and redevelopment projects at Malabar Hill and Chembur,” the company said.
Adding to the momentum, the company said on Tuesday that its wholly owned subsidiary, Starworth Infrastructure and Construction Ltd., received a letter of intent for a large residential project in Bengaluru worth Rs 311.18 crore.Sattva Resi Pvt. Ltd. awarded the order for the construction of the residential project Sattva AANGANE, which has an approximate built-up area of 3.04 million square feet and is expected to be executed over a 37-month period.
Wednesday’s rally helped Puravankara break a five-session losing streak. Even so, the stock remains under pressure over a longer horizon, having declined 25.2% over the past year, making the sharp reaction to the Q3 update a notable reversal for investors tracking the real estate space.
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