Arkade Developers Targets 25% CAGR For Current Fiscal On Sustained Demand

Mumbai-based Arkade Developers Ltd. is targeting a 25% compound annual growth rate based on strong demand and pre-sales, according to the real estate company's Chairman and Managing Director Amit Jain.

The real estate company, which got listed on the stock exchanges late in September, has reported a more than fourfold increase in its consolidated net profit at Rs 30.21 crore for the quarter ending June 2024. The company had posted a Rs 6.57 crore profit in the year-ago period.

In the April-June period of the current financial year, total income of the company doubled to Rs 125.51 crore compared to that of the corresponding period of FY24 that stood at Rs 62.01 crore.

Jain told NDTV Profit that the second quarter revenues are also set to increase, indicating a continuous demand for residential premises in Mumbai.

“There is a constant demand for new homes. So that is reflected in the revenues, pre-sales and collections. Around 25% is what we are targeting as CAGR," he said.

Jain mentioned that the rise in real estate prices in Mumbai has helped the company make premium earnings on its projects. “Prices are going on increasing because we can get a premium. Our margins in new projects are going on increasing. Prices are beating inflation; they are going up 10% YoY on (an) average," the top executive added.

He said that the company is looking to launch three new projects in the remaining portion of FY25, including one in the eastern suburb of Bhandup that will be launched in October.

Elaborating on the Bhandup project, Jain said it will come up on a three-acre land parcel and include seven buildings that will offer 2–3 BHK flats at a ticket size of Rs 1.5 crore. "It has a topline potential of Rs 800 crore. On a year-on-year basis, we are targeting three to four projects and growing at an average of 20–25%,” Jain said.

The company's current margins, at around 25% of its top line, are likely to be sustained for the next two to three quarters, he added.

Shares of Arkade Developers were trading 1.3% lower at Rs 152.9 per share in early trade on Tuesday, coming off the opening high of Rs 156.07 apiece. The benchmark NSE Nifty 50 was trading 0.27% lower at 25,060.

The stock has risen nearly 21% since listing on Sept. 24 this year. Total traded volume so far in the day was 0.06 times the 30-day average volume. RSI for the stock stood at 44.31.