The shares of this leading real estate developer surged by 14.26 percent on Monday after the company announced that it has expanded its presence in Amritsar with a capital outlay of Rs 1,000 crore.
With a market capitalization of Rs 1,941 crores, the shares of Omaxe Ltd are currently trading at Rs 106 per share, down by 34.7 percent from its 52-week high of Rs 160.20 per share. Over the past five years, the stock has delivered a negative return of 49 percent.
The company announced that it is expanding its presence in Punjab with its new integrated township project, New Amritsar, with an investment of over Rs 1,000 crore. The township will be 127 acres in the first phase, out of a total acquisition of 260 acres, and is ideally located on GT Road just 12 minutes from the Golden Temple.
This development is vital for Omaxe in terms of its Punjab growth platform, with Omaxe already established in six cities, including New Chandigarh, Ludhiana, and Patiala.
The New Amritsar township will have residential plots (300, 500, and 1000 sq. yards), commercial development, school, and clubhouse, and green spaces, among other amenities.
The township will also encompass future important drivers of infrastructure like Delhi-Amritsar-Katra Expressway, Amritsar Ring Road, and enhanced airport connectivity, making it a unique investment opportunity. The first phase is anticipated to be constructed in four years, as Omaxe has funding ready (with RERA approval) and a great market response.
Financial Highlights
The company reported a revenue of Rs 1,561 crore in FY25, down by 3.30 percent from its FY24 revenue of Rs 1,614 crore. Coming to its profitability, the company reported a net loss Rs 685 crore in FY25 from a loss of Rs 406 crore in FY24.
The stock has delivered a negative ROE and ROCE of 498 percent and 60.65 percent respectively, and has a debt to equity ratio of 1.66x as compared to its negative interest coverage ratio of 2.91x.
Originally a construction and contracting company, Omaxe started the journey into real estate in 2001. After listing in 2007 on the BSE and NSE, Omaxe has grown to become one of India’s largest developers, with substantial land reserves. Over a period of 38 years, Omaxe has delivered over 135 million sq. ft. in 31 cities across 8 states across a diverse portfolio with integrated township; offices; malls and high-street; in both luxury and affordable segments.
Written by Satyajeet Mukherjee
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