Subscribe for Arkade Developers Ltd; Anand Rathi

Anand Rathi, Arkade Developers Ltd

Incorporated in 1986, Mumbai based Arkade developers is the real estate development Company concentrating on the development of premium aspirational lifestyle residential premises specifically in Mumbai Metropolitan Region (MMR). The company's business can be divided into two segments: Development/construction of residential buildings on land acquired by the company (new projects); and Redevelopment of existing buildings (Redevelopment Projects). As of June 30, 2024, the company has developed 2.20 million square feet of residential properties. From CY 2003 to March 2024, the company has completed the redevelopment of 10 projects in the western suburbs of Mumbai and 1 project in south-central Mumbai (through a partnership firm in which the company held a majority stake) with a total built-up area of 1,000,000 sq. feet approx.

Valuation and Outlook

On the valuation front, at the upper price band, For FY24 Arkade is seeking PE of 19.3 times and P/BV 3.2 with market capitalization of 23760 Mn post-issue which seems the issue fairly priced. Therefore, considering business growth visibility and stable financial performance the company is well placed to tap in rising Mumbai’s real estate sector we recommend a “SUBSCRIBE for LONG TERM” to the IPO.

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16092024 -Arkade Developers -IPO - anand