Synopsis: Shares of Puravankara jumped after its wholly owned arm, Starworth Infrastructure & Construction (SICL), secured an LoI from Sattva Resi Pvt Ltd to construct the residential project Sattva AANGANE in Bengaluru valued at Rs 311 crore.
The shares of this company, engaged in the development and sale of real estate spanning projects in metro cities like Bengaluru, Hyderabad, Chennai, Kolkata, Mumbai, Pune and Goa, are in focus after its wholly owned subsidiary bagged a significant order. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 5,526 crore, the shares of Puravankara Ltd reached a day’s high of Rs 234.95 per share, up nearly 2 percent from its day’s low price of Rs 230.95 per share. Over the past five years, the stock has delivered a robust return of 175 percent, outperforming NIFTY 50’s return of 78 percent.
About the order
Puravankara Limited has announced to the stock exchanges that its wholly owned subsidiary, Starworth Infrastructure & Construction Limited (SICL), has secured a Letter of Intent (LoI) for a major construction project in Bengaluru. The LoI has been issued to SICL by Sattva Resi Private Limited for the construction of its upcoming residential project Sattva AANGANE at East Taluk, Bangalore 560049.
The project includes the construction of a huge residential complex with a built-up area of 3.04 mn sq. ft. The approximate total contract value is Rs 311.18 crore, and the time for execution is 37 months. This order will give a major boost to the construction order book of Puravankara. It also gives more project execution visibility to the Puravankara group as a whole.
The revenue from operations for Puravankara stands at Rs 644 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 496 crores, up by 30 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 23 percent from Rs 524 crore.
Coming down to its profitability, the company reported a net loss of Rs 43 crore in Q2 FY26, which widened from Rs 17 crore in Q2 FY25. Additionally, on a QoQ basis, it reported a net loss of Rs 69 crore.
The company has been struggling to make profits during the past few quarters, mainly because of high interest expenses on its debt. Although the company remains EBITDA profitable, which stands at Rs 104 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 112 crores, down by 7 per cent YoY. However, on a QoQ basis, it reported a robust growth of 55 percent from Rs 67 crore.
Puravankara Limited has been shaping Bengaluru’s real estate landscape for over 50 years. Since 1975, they have earned a reputation for delivering quality homes, honouring their commitments, and ensuring projects are completed properly. They don’t focus on just one area either.
Under the Puravankara brand, they manage premium luxury housing; Provident Housing covers mid-income homes; and Purva Land handles plotted developments. Their construction projects are carried out by Starworth Infrastructure & Construction, and they are also involved in commercial office spaces.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Realty stock jumps after securing ₹311 Cr work order from Sattva Group appeared first on Trade Brains.