Three reasons why small cap Ajmera realty is soaring on bourses

The stock made a fresh 52-week high for itself on Friday, making an intraday high of Rs 268.45 per share.

Ajmera realty has been soaring on bourses and is featuring amongst the top BSE Smallcap gainers in the past couple of sessions. On Friday Ajmera Realty is up by more than 15 per cent on intraday basis. On YTD basis the stock price of Ajmera Realty is up by more than 81 per cent while in one year the stock gained more than 183 per cent. The stock made a fresh 52-week high for itself on Friday, making an intraday high of Rs 268.45 per share.

Following are the three reasons why the Ajmera Realty is soaring on bourses:-

1.Industry perks: - Ajmera realty is one of the biggest beneficiaries of various perks announced by the State and Central government to support the real-estate sector in India. In Maharashtra, the state government decided to reduce the stamp duty for a limited time period. Such a supportive decision by the state government pushed several real estate investors and home buyers to purchase the property as they could save at least 3 per cent on the Stamp duty. Stamp duty was reduced to 2 per cent from 5 per cent in the State of Maharashtra.

2.Rising demand:- soft interest rate stance by RBI has made it possible for first time home buyers to afford a new house as the EMIs get considerably lower with drop in interest rates. The interest rates worldwide are at historic lows. Lower interest rates historically have created demand for the real estate players and industry.

3. Improving fundamentals :- Ajmera Realty has declared profit after tax growth of more than 200 per cent. The jump in profits was due to increasing demand for its properties, lower interest rates lowering the interest costs and lowering of debt which has trigger higher profits. These fundamental improvements have made valuations look attractive for Ajmera Realty.