New project lifts Parsvnath Developers

Parsvnath Developers gained 3.11% to Rs 367.90 at 12:17 IST on BSE, after the company said Parsvnath SEZ, its subsidiary has signed a memorandum of understanding with state government of Rajasthan to develop 112 acres special economic zone in Jaipur.

The company made this announcement during the market hours today, 4 December 2007.

Meanwhile, BSE Sensex was down 0.98 points or 0.00% to 19,602.43.

On BSE 3.30 lakh shares were traded in the counter. The scrip had an average daily volume of 3.48 lakh shares in the past one quarter.

The stock hit a high of Rs 375 and a low of Rs 357 so far during the day. The stock has a 52-week high of Rs 545 on 6 December 2006 and a 52-week low of Rs 221.60 on 7 March 2007.

The mid-cap scrip had outperformed the market over the past one month till 3 December 2007, gaining 9.25% compared to the Sensex's decline of 1.87%. It had underperformed the market in the past one quarter, rising 12.68% compared to Sensex's rise of 26.76%.

The company's current equity is Rs 184.70 crore. Face value per share is Rs 10.

The current price of Rs 367.90 discounts Q2 September 2007 annualized EPS of Rs 21.82 by a PE multiple of 16.86.

The special economic zone (SEZ) envisage an investment of Rs 1400 crore and will focus on giving a further boost to gems and jewellery industry, Parsvnath Developers said. The project is to be executed within three years from the date of commencement.

The memorandum of understanding (MoU) entails that the state government will provide necessary support for infrastructure facilities at the SEZ.

Meanwhile, as per recent reports, the company plans a retail foray with hypermarket stores and it is in talks with two French giants Carrefour and Groupe Casino for the purpose.

On 5 November 2007, Parsvnath SEZ, a subsidiary of Parsvnath Developers PDL), signed a memorandum of understanding with state government of Madhya Pradesh to provide facilities and incentives at a 76 acres special economic zone at Indore.

On 18 October 2007, PDL said, it would build an iconic residential development Parsvnath City at Indore, sprawling over 200 acres.

Parsvnath Developers' net profit rose 105.9% to Rs 100.74 crore on 36.3% growth in net sales to Rs 397.24 crore in Q2 September 2007 over Q2 September 2006.

Parsvnath Developers is engaged in promoting and developing real estate. It includes township development, construction of retail shopping malls, hospitals, hotels and clubs