Realty stock jumps 5% after receiving a ₹250 Cr housing society redevelopment project in Mumbai

Synopsis:: The shares of this micro-cap realty stock were in focus and jumped 5% after the company announced its bagging of a Rs 250 crore redevelopment project for BOI Staff Sheetal Co-operative Housing Society in Mumbai. 

The shares of this company, which is a Mumbai-based real estate company that concentrates on the redevelopment of old residential societies and basically deals with the redevelopment of old buildings and the delivery of new residential projects in the city of Mumbai and other nearby areas, had its shares in momentum today following a redevelopment project worth Rs 250 crore being received by the company. 

With the market cap of Rs 675 crore, the shares of Modis Navnirman Ltd had hit their intraday high at Rs 360, gaining about 5 per cent compared to their previous day’s closing price of Rs 343. The shares are trading at a PE of 34.2, whereas their industry PE is at 34.8.

Modis Navnirman Limited has bagged a redevelopment order of Rs 250 crore in the real estate space from the housing society segment in Mumbai. This is an important addition to the company’s redevelopment order booking. The company is taking up the redevelopment of the BOI Staff Sheetal Co-operative Housing Society in Borivali West. The plot size of this redevelopment venture measures approximately 3,924.91 sq. metres. Since Borivali is an already established residential micro-market, it is expected to yield better demand visibility.

One of the major strengths of this mandate is the high degree of execution certainty. This is because the society has already done the 79A statutory consent, and 100% of its members have given unanimous consent for the appointment of the developer, Modis Navnirman. Such a unanimous mandate is usually a sign of high confidence in the execution capability of the appointed developer. This is especially true for a project located within the Mumbai slums.

Strategically, an Rs 250 crore GDV project will improve Modi Navnirman’s medium-term revenue visibility and will be an advantage in all the redevelopment work in Mumbai’s real estate market, since it has constrained supply. This project will also help improve the credibility of this company to undertake larger redevelopment projects. The company will then be successful in expanding its portfolio.

The revenue from operations for the company stands at Rs 83 crores in H1 FY26 compared to H1 FY25 revenue of Rs 37 crores, up by about 124 per cent YoY. Similarly, the net profit stood at Rs 12 crore in H1 FY26, up from Rs 5 crore in H1 FY25, giving about a 140 per cent return YoY. 

The rise of the firm is sustained by the “asset-light” and partnership-driven model of redevelopment, which allows it to maintain lower land costs, besides ensuring positive margins, especially in the case of MHADA, SRA, and Society Redevelopment schemes. The firm’s current focus in the metropolitan areas of the Mumbai suburbs, like Malad, Kandivali, and Borivali, besides targeting the mid, “aspirational” segment, puts it on the right track regarding a sustainable stream of demands. 

Further boosts are provided by the factor of the schemes being situated in “infrastructure-linked” areas, the capacity to scale up in “high-rise & mixed use”, as well as the “macro-trend driver” of increased urban housing demands.

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