1. At a Glance
From affordable flats in Navi Mumbai to luxury villas and a sports gymkhana, Arihant Superstructures (ASL) has gone from “starter home” to “weekend villa” developer. Q1 FY26 saw a jaw-dropping699% YoY PAT growth, but remember — the base was so low it could limbo under a closed door.
2. Introduction
Founded in 1994, ASL has built itself into a recognizable name in the MMR real estate market. Historically focused on mid-income housing, it’s now dabbling in premium luxury projects and hospitality.
Their game plan: mix outright land development withasset-light JDs/JVs/DMs(~19% of ongoing area) to scale without bloating the balance sheet — although looking at their debt pile, “light” is relative.
The promoter stake drop from74.71% to 71.10%in the last quarter is a subplot worth watching.
3. Business Model – WTF Do They Even Do?
- Core:Residential real estate — affordable & mid-income housing in MMR.
- New Ventures:Luxury villas, hotel project, sports club/gymkhana.
- Execution Modes:
- Own Developmentfor control.
- JD/JV/DMfor risk-sharing and faster project pipeline.
- In-house expertise:Land acquisition, approvals, EPC, and sales.
Roast: Think of it as a thali — main focus is dal-chawal housing, but they’ve now added luxury paneer and dessert on the side.
4. Financials Overview
FY25 Annual (Consolidated):
- Revenue:₹499 Cr (flat YoY).
- EBITDA:₹104 Cr (~21% margin).
- PAT:₹55 Cr (-20% YoY).
- EPS:₹13.28.
- P/E:~25.2x.
- Debt:
- ₹738 Cr (high).
Q1 FY26:
- Revenue: ₹121 Cr (+43% YoY).
- PAT: ₹15.91 Cr (+699% YoY, vs low base).
- EPS: ₹3.87.
P/E Recalc:Q1 EPS ₹3.87 × 4 = ₹15.48 → CMP ₹419 ÷ ₹15.48 =27.1x.
5. Valuation (Fair Value RANGE)
Method 1 – P/E
- Sector mid-cap dev: 18–25x.
- Applying to FY26E EPS ₹15.48 → ₹279 – ₹387.
Method 2 – EV/EBITDA
- FY25 EBITDA: ₹104 Cr.
- Applying 10–12x → EV ₹1,040 – ₹1,248 Cr.
- Less Debt (₹738 Cr) → Equity value: ₹302 – ₹510 Cr.
- Per share (~4.13 Cr shares): ₹73 – ₹123.
Method 3 – NAV Method (simplified)
- Assuming project NAV uplift: ₹320 – ₹380 per share.
| Method | FV Low | FV High |
|---|---|---|
| P/E | 279 | 387 |
| EV/EBITDA | 73 | 123 |
| NAV | 320 | 380 |
Fair Value Range:₹280 – ₹380This FV range is for educational purposes only and is not
