Arkade Developers IPO Review

ARKADE DEVELOPERS is a real estate development Company concentrating on the development of premium aspirational lifestyle residential premises in Mumbai, Maharashtra, India’s commercial capital. 

They have developed a strong brand proposition and successful track record including by leveraging their lineage – Amit Mangilal Jain, the Promoter, is a second-generation real estate entrepreneur whose family has been involved in real estate development since 1986.

Financially, Revenue in Fiscal 2024, Fiscal 2023 and Fiscal 2022 was ₹6,357.12 million, ₹2,240.13 million and ₹2,371.82 million, respectively. Their revenue from operations has grown at a CAGR of 66.51% between Fiscal 2022 and Fiscal 2024. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹1,693.75 Millions, ₹683.25 Millions and ₹699.72 Millions respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 were ₹1,228.08 Millions, ₹507.66 Millions and ₹508.44 Millions respectively.

For the Arkade Developers IPO, the company is issuing shares at a pre-issue EPS of ₹8.08 and a post-issue EPS of ₹6.60. The pre-issue P/E ratio is 15.84x, while the post-issue P/E ratio is 19.39x against the Industre P/E ratio is 76.44x. The company's ROCE for FY24 is 47.34% and ROE for FY24 is 46.90%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Arkade Developers showing potential listing gains of 70% - 75%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Arkade Developers Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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