Real estate stock jumps over 4% after promoter increases stake in the Co.

This small-cap company, specializing in high-end lifestyle residential developments, saw its shares rally after its promoter acquired 100,000 shares on March 10, 2025.

Stock Price Movement

Arkade Developers has a market capitalization of ₹2,819.3 crore, with its stock reaching an intraday high of ₹158 per share, up 3.87 percent from the previous close of ₹152.05. The stock has since retreated and is currently trading at ₹158 per share.

What Happened and their implication

On 10th March 2025 MD & Chairman Amit Jain purchased 100000 shares for an average price of Rs148.2 per share with a total value of about Rs1,48,22,000 via the means of market purchase. 

Apart from this since January 2025 till now he has procured about 9,00,000 shares. Insiders, particularly Amit Jain, were net buyers of the company’s stock over the past year. He made the largest purchase of ₹46 million worth of shares at ₹152 per share, showing optimism about the company’s prospects.

About The Company

Arkade Developers Limited was incorporated as Arkade Developers Private Limited in Mumbai on May 13, 1986. They specialize in creating premium, upscale residential projects designed for a sophisticated lifestyle. They focus on primarily residential and commercial projects.

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Financials

The company’s total revenues as of Q3 FY-25 has decreased by around 6 percent to Rs 231.926 Crs compared to previous years Q3 FY-24 which was at Rs 240.1325 Crs. The company’s operating profit also declined by 7.55 percent to 60.97 cr from 65.95 Cr. The company’s profit after tax however increased by 2.47 percent compared to previous year Q3 to Rs 50.849 Crs from Rs 48.8754 Crs

Performance

The company has a price-to-earnings (P/E) ratio of 19.67, lower than the industry average of 29.0, suggesting potential undervaluation. It maintains a strong financial position with a low debt-to-equity ratio of 0.09, reflecting minimal financial risk.

Over the past three years, Arkade Developers has delivered an impressive average return on equity (ROE) of 17.18 percent and a return on capital employed (ROCE) of 21.5 percent. T (trade brains portal)

Future Outlook

The combination of insider buying, strong ownership, and potential undervaluation makes Arkade Developers a stock worth monitoring. Arkade Developers has nine redevelopment projects in the pipeline with a total business potential of approximately ₹7,000 crores. Additionally, the company has an ongoing project with around ₹2,500 crores in unsold revenue. Combined, these ongoing and upcoming projects are expected to generate sales potential of ₹10,000 crores

Written by – Varun Nair

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