Buy Arvind SmartSpaces, target price Rs 1,085: Axis Securities

Axis Securities has a buy call on Arvind SmartSpaces with a target price of Rs 1,085. The current market price of Arvind SmartSpaces is Rs 923.15. The company, incorporated in 2008, is a smallcap company with a market cap of Rs 4150.01 crore, operating in the real estate sector.

Arvind SmartSpaces' key products/revenue segments include income From Real Estate Development and Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 269.28 crore, up 248.75% from last quarter Total Income of Rs 77.21 crore and up 257.73% from last year same quarter Total income of Rs 75.27 crore. The company has reported net profit after tax of Rs 42.60 crore in the latest quarter.

Investment Rationale
Arvind Smartspaces is confident in achieving its guidance of 30-35% growth in pre-sales. With a total inventory of approximately Rs 10,000 crore (ongoing, upcoming, and BD), it is positioned at a transformative point, from which exponential growth is expected. The company is prepared to expand across different geographies and is inclined to undertake more vertical projects in the future. Its balance sheet strength supports a substantial increase in BD while maintaining growth momentum.

Axis Securities continues to value the company at an 8X EV/EBITDA to arrive at a target price of Rs1,085/share, showing a 40% upside from the current market price (CMP).

Promoter/FII Holdings
Promoters held 50.17 per cent stake in the company as of 30-Sep-2024, while FIIs owned 2.51 per cent, DIIs 12.76 per cent.