Thursday, May 26, 2022
outlook business

Building a tempo

Parsvnath Developers is grappling with declining property prices and weak demand in the NCR market

Building a tempo
Building a tempo

Pradeep Kumar Jain is in the hot seat. The promoter-manager of the Delhi-based realtor Parsvnath Developers is grappling with declining property prices and weak demand in the NCR market. Though the stock is down 46% from its 52-week high, Jain has bought a little over 1 lakh shares of the company at a price of ₹20.37 share in three sessions. However, following the correction on the street, the stock is now trading below the acquisition price at ₹20. Following the transaction, Jain’s holding has marginally gone up to 26.33% from 26.3%. The overall promoter holding is around 72%, but more that half of the stake is pledged with institutions. Even though sales grew 36% to ₹763 crore in FY15, the company slipped into the red with a loss of ₹108 crore against a profit of ₹16 crore in FY14. The firm is now banking on REIT investments, as it has a large portfolio of leasable commercial space within New Delhi, which includes commercial space along all Metro stations. Looks like Jain is expecting better times ahead.

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