Kolte-Patil Developers (KPDL) witnessed a significant rally in its stock price, surging 12% to ₹439.85 on Thursday during intra-day trade on the BSE. The rise came after the real estate developer reported its highest-ever quarterly sales value of ₹770 crore for the second quarter of FY25 (Q2FY25).
This marked an 8% increase quarter-on-quarter (QoQ) and a notable 22% year-on-year (YoY) growth. Investors looking to buy shares online might consider this momentum as a positive indicator of the company's growth trajectory.
Impressive sales and collections despite challenges
During Q2FY25, Kolte-Patil Developers also reported collections of ₹550 crore. Although this represented a 10% drop in QoQ, it still showed a 16% YoY increase. The robust sales figures and consistent project execution helped the company maintain solid financial performance. This trend can be a strong signal for those aiming to buy shares online, as consistent performance often reflects stability in the market.
The company’s operational update highlighted a 16% YoY increase in average realisations, reaching ₹7,472 per square foot. Premium projects like Life Republic and 24K in key locations such as Baner, Pimple Nilakh, and Life Republic were the primary drivers of this growth. This uptick in premium real estate projects could further entice potential investors who want to buy shares online as the company strengthens its presence in high-demand areas.
Confidence in meeting FY25 targets
Kolte-Patil’s management remains confident in achieving its pre-sales target of ₹3,500 crore for FY25, backed by a strong pipeline of launches planned for the second half of the fiscal year. The growing demand for housing, especially in premium segments, puts the company in a solid position to capitalise on emerging opportunities. Investors planning to buy shares online should take note of the company's strategic positioning, which could lead to further stock price growth in the coming quarters.
At 09:45 AM, KPDL’s stock was trading 10% higher at ₹433.40, significantly outperforming the BSE Sensex, which declined by 0.28%. With trading volumes jumping nearly tenfold, a combined 2.2 million shares changed hands on the NSE and BSE. Such high trading activity highlights the increasing investor interest in Kolte-Patil, making it a prime candidate for those interested in buying shares online.
Expanding presence beyond Pune
Kolte-Patil Developers is a dominant player in Pune's real estate market, with a growing presence in Mumbai and Bengaluru. The company operates under two key brands: ‘Kolte-Patil’ for the mid-income segment and ‘24K’ for luxury projects.
With new project launches planned beyond Pune, the company expects non-Pune markets to contribute around 20-25% of its sales in FY25, up from 5% in FY24. This diversification strategy, coupled with an expected 20% growth in FY25 sales, may further entice those looking to buy shares online.
According to CRISIL Ratings, Kolte-Patil Developers is projected to achieve sales of ₹3,300-3,500 crore in FY25, reflecting a 20% increase from FY24 levels. The rating agency also noted the company’s strong cash generation from sold projects, with collections expected to grow by 25-30% in FY25 and another 20-25% in FY26. These factors contribute to the company's low leverage and provide a positive outlook for investors who wish to buy shares online.
Strong growth potential with low debt levels
CRISIL Ratings further emphasised that Kolte-Patil Developers is well-positioned to scale its operations in the medium term. This is supported by the company’s significant launch pipeline and the high salability of its ongoing projects. With its strong financial position and low debt levels, Kolte-Patil remains a compelling option for those considering buying shares online.
As the real estate sector continues to thrive, especially in premium categories, Kolte-Patil Developers' stock presents an attractive opportunity for investors. The company's strategic growth plans, backed by a strong pipeline of launches and expanding geographic footprint, signal positive future performance for anyone looking to buy shares online.
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