The share price of real estate firm National Standard, a part of the Lodha Group, is on a roll. It has gained close to 70 percent in four days since the announcement of its October-December quarter results. The company’s revenue from operations saw a multi-fold increase of 221 times from Rs 2.62 lakh in Q3 FY22 to Rs 5.8 crore in Q3 FY23.
The BSE-listed stock gained 10 percent on January 17 and closed at Rs 7537. The stock was up 20 percent on January 12, 13 and 16, taking the cumulative gain to 70 percent in the last four trading sessions. It has a total market capitalisation of Rs 15,075 crore of which Rs 3900 crore is free float.
On January 11, the company informed exchanges that its Q3 net profit has risen 13.29 percent to Rs 3.24 crore as against Rs 2.86 crore during the same period a year ago. Meanwhile, total income doubled from Rs 4.4 crore to Rs 8.5 crore.
This included Rs 5.8 crore of revenue from operations and Rs 2.75 crore of other income. In Q3 FY22, revenue from operations was only Rs 2.62 lakh and other income was Rs 4.39 crore.
The company is currently engaged in the construction of a residential project by the name of Lodha Grandezza in Thane. “The project comprises twin 18-storey residential towers in a mixed-use development with three commercial Supremus towers comprising chic boutique offices,” as per the website.
The target client profile of this project is the higher/upper middle-income segment of the market, it added.
On January 25, 2022, the Board of Directors of Macrotech Developers (Lodha) considered and approved the scheme of merger of National Standard, Roselabs Finance and Sanathnagar Enterprises with itself. The rationale behind the move was that the three entities had “no future business plan”. It has holding of 73.94 percent, 74.25 percent and 72.70 percent in these entities respectively.
The merger ratio was decided as nine fully paid-up equity shares of Macrotech Developers for every 100 shares held in National Standard. Since the merger ratio was not in favour of National Standard’s shareholders, the stock hit the lower circuit the day after the announcement.
Following this, Macrotech Developers issued a clarification that the merger would proceed only after the approval of the majority of the minority shareholders of the three companies.
“The market capitalization of National Standard was Rs 100 crore before Covid-19. It has run up because of infrequent trading,” said Macrotech Developers in the exchange filing.
Moneycontrol has sought clarification from the company on the merger update, and the copy will be updated as soon as a response is received.