Arkade Developers IPO Opens Today: Pros & Cons 

Published: 16th Sep 2024

By: Value Research

About Arkade Developers

The company is a real estate developer specialising in residential development and redevelopment projects, primarily in the Mumbai Metropolitan Region.

Total IPO size (Rs cr) 410   Offer for sale (Rs cr) -   Fresh issue (Rs cr) 410   Price band (Rs) 121   -128   Subscription dates September   16-19, 2024   Purpose of issue To   fund existing projects and potential acquisitions

IPO details

2376   Net worth (Rs cr) 733   Promoter holding (%) 70.8   Price/earnings ratio (P/E) 19.3   Price/book ratio (P/B) 3.2M-cap (Rs cr)

Post-IPO

2Y CAGR (%) FY24 FY23 FY22   Revenue (Rs cr) 66.5 635 220 229   EBIT (Rs cr) 64.7 167 64 62   PAT (Rs cr) 56 123 51 51   Net worth (Rs cr) 323 200 150   Total debt 71 149 64Key financials

Financial history

EBIT is earnings before interest and taxes PAT is profit after tax

Ratios 3Y average FY24 FY23 FY22   ROE (%) 38.9 46.9 29 40.9   ROCE (%) 32.2 44.9 22.8 28.8   EBIT margin (%) 27.5 26.4 29.2 26.9   Debt-to-equity 0.4 0.2 0.7 0.4

Key ratios

ROE is return on equity ROCE is return on capital employed

The pros

The company has a solid track record of timely project completions. It has successfully developed 28 projects with an average completion time frame of 3 years.

The cons

Concentration of operations in a single region and complex negotiations in redevelopment projects, where it is increasing its focus are some risk factors. To check the complete analysis, head on to our full story from the link below.

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