This small-cap estate developer resolves legal issue with OLV & OLPS society, unlocks Rs 350 crores GDV potential and Rs 225 crore GDV for redevelopment

The shares of company trading at Rs 347 with a market cap of Rs 1,535.12 crore. The stock price has given 16 per cent returns in the last month.

Suraj Estate Developers Ltd, a major real estate company in South Central Mumbai (SCM), has resolved a legal dispute with OLV & OLPS Society. They've reached an agreement to develop a property in Mahim Division measuring about 7,625.73 square meters. The company will pay approximately Rs 47 crores to the landowner and provide additional flats to OLV & OLPS Society, totaling about 3,300 square meters.

After this settlement, the company has a built-up area of around 10,813.63 square meters, including space for sale, valued at Rs 350 crores. Additionally, they've acquired development rights for land measuring approximately 4,790.76 square meters, with five existing buildings occupied by 108 tenants. To accommodate these tenants, they'll use about 6,688.90 square meters of floor space. After allocating surplus area to MHADA, they'll have around 6,467.52 square meters available for sale, valued at approximately Rs 225 crores.

Management Commentary

Commenting on this, Mr. Rahul Thomas, Whole Time Director, Suraj Estate Developers Limited, said, “We are delighted to announce an amicable resolution to this longstanding litigation matter. This favourable resolution marks a significant milestone for the company and underscores its commitment to excellence in the real estate sector. The settlement provides us with a sales potential of Rs 350 crores. Additionally, the redevelopment of five buildings is projected to yield Rs 225 crores, further bolstering the company's financial prospects. At Suraj, we are committed to delivering world class luxury projects that exceed expectations. With a track record of delivering premium projects, we are poised for continued success and growth in the real estate industry”.

Since incorporation, Suraj Estate Developers have completed 42 projects with a developed area of more than 1,046,543.20 square feet in the South-Central Mumbai region. In addition to the completed Projects, the company has 13 ongoing projects with a developable area of 2,034,434.40 square feet and saleable RERA carpet area 6,09,928 square feet and 16 upcoming Projects with an estimated carpet area of 744,149 square feet.

Suraj Estate Developers Ltd’s shares are trading at Rs 347 with a market cap of Rs 1,535.12 crore. The stock price has given 16 per cent returns in the last month.

This Real Estate Small-Cap stock should be kept under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.