Tuesday, January 13, marks a crucial deadline for investors interested in Ajmera Realty & Infra shares, as it represents the final trading session to purchase shares and qualify for the company's upcoming stock split. This milestone event will make the stock more accessible to retail investors through enhanced affordability.

Stock Split Details

Ajmera Realty & Infra India Ltd. will execute its first-ever stock split on Wednesday, January 14. The board approved this subdivision plan in November, implementing a 1:5 split ratio that will significantly alter the share structure.

The stock split will transform each existing share with a face value of ₹10.00 into five shares with a face value of ₹2.00 each. This corporate action enhances liquidity as the stock price adjusts proportionally, making the shares more affordable for retail investors while maintaining the total value of existing shareholdings.

Eligibility Requirements

To qualify for the stock split, investors must hold shares as of the record date announced by the company. The record date of January 14 determines which shareholders will receive additional shares post-split based on the specified ratio.

Due to India's T+1 settlement cycle, investors must purchase shares at least one trading day before the record date to ensure eligibility. Purchasing shares on the record date itself will not qualify investors, as ownership changes won't be reflected in time during the settlement process.

Recent Financial Performance

Ajmera Realty and Infra India Ltd. reported mixed financial results for the second quarter of the current financial year. The company's quarterly performance showed both challenges and growth areas.

Profit declined by 14.1% to ₹30.40 crore compared to ₹35.40 crore in the previous quarter of the fiscal year. However, revenue demonstrated positive momentum, advancing 9.6% year-on-year for the three months ended September to reach ₹219.00 crore. Operating income, measured as earnings before interest, taxes, depreciation, and amortization, fell 4.0% year-on-year to ₹58.00 crore, resulting in an EBITDA margin contraction to 26.5%.

Understanding Stock Splits

A stock split represents a corporate action where companies increase the number of outstanding shares while proportionally reducing the face value per share. This mechanism typically enhances market liquidity as the stock price adjusts accordingly to reflect the new share structure.

The fundamental principle ensures that while shareholders' total investment value remains unchanged, the number of shares they hold increases proportionally. This corporate action often makes stocks more accessible to a broader range of investors, particularly retail participants who may find lower-priced shares more attractive for investment purposes.

Ajmera Realty & Infra has achieved its highest ever quarterly sales, marking a significant milestone in the company's growth trajectory. The real estate developer reported sales of INR 828.00 crores for the quarter, representing a robust 48% year-on-year growth.

Strong Project Launches Fuel Growth

The company's impressive performance was primarily driven by two major project launches in September:

1. Ajmera Manhattan 2 at Wadala
2. Thirty 3.15 in Bandra

These projects have a combined gross development value of over INR 2,100.00 crores, showcasing Ajmera Realty's ambitious expansion plans. Notably, Manhattan 2 has already sold 38% of its inventory within a month of its launch, indicating strong market demand for the company's offerings.

Financial Performance

For the first half of the fiscal year, Ajmera Realty reported:

Operational Highlights

• Delivered 533 homes in the first half
• Targeting 1,000 possessions for the full year
• Total debt stands at INR 690.00 crores
• Debt-to-equity ratio maintained at 0.55x

Future Outlook

Ajmera Realty has strengthened its revenue visibility to INR 3,599.00 crores from committed sales and available inventory. The company maintains its guidance for INR 6,400.00 crores in launches for the year and expects strong momentum from seven upcoming projects across 1.6 million square feet.

Market Position

The company's performance aligns with the broader trend in the Indian real estate market, which is showing signs of maturity and steady growth. Ajmera Realty's focus on luxury housing in Mumbai, coupled with its presence in mid-income and premium segments, positions it well to capitalize on current market dynamics.

As the real estate sector continues to consolidate, Ajmera Realty's strategic approach to new launches and project execution appears to be yielding positive results. The company's ability to align with market demand while maintaining financial discipline suggests a robust foundation for future growth.