CARE assigns fundamental grade of 2/5 to Arihant Super

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26 Aug, 2025 12:21

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CARE Equity Research's report on Arihant Superstructures

CARE Equity Research assigns a fundamental grade of 2/5 to Arihant Superstructures Ltd. This indicates ‘Modest Fundamentals’. The grading factors in the company’s niche presence in residential projects, which are currently under construction/ early stage, located in Navi Mumbai, Panvel & Thane in Maharashtra and Jodhpur in Rajasthan. The Company has saleable area of ~11 mn sq. ft. spread across 12 projects expected to be completed by FY21. Currently, the company has 9 ongoing projects aggregating ~10 mn. sq. ft. of area under construction. Arihant Group has a good delivery track record – delivered ~3 mn sq. ft. to date. The company is now gearing to ramp up its delivery capabilities significantly which provides a healthy revenue visibility going forward. ASL, since inception, largely concentrated in Mumbai markets however the company is now expanding to other cities and currently has three ongoing projects in Jodhpur in Rajasthan. The strategy of expanding presence in other cities would reduce the concentration risk for the company to a certain extent. However, the grading is constrained due to execution risk with significant scale of operations, high dependence on customer advances and cyclical nature of industry.

ValuationWe have valued the equity shares of ASL at Rs.47.3 per share. The valuation has been arrived at by using Sum of the parts (SOTP) valuation methodology. The CIV of Rs.47.3 per share is around 23.2% above the Current Market Price (CMP) of Rs.38.4 per share; hence we assign a valuation grade of 4/5 to the equity shares of ASL, indicating that equity shares have ‘Moderate Upside Potential.’

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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