DB Realty shares soar 110% in a month; up over 2150% in three years

Despite the overall weakness in the broader market, shares of DB Realty have more than doubled investors' wealth in the last one month, moving from ₹75.15 apiece to ₹158.10, translating into a staggering rally of 110%. In contrast, Nifty 50 declined by 2.22% during the same period.

This strong rally came after Authum Investment and Infrastructure, on August 17, acquired 40 lakh shares in the company at a price of ₹127 apiece. Two individual investors, Aditya S Chandak and Abhay Shyamsunder, sold 20 lakh company shares each at ₹127 apiece, as per the exchange data.

Despite this impressive rally, the stock is still 67% lower than its all-time high of ₹475.90, which was reached during its listing year of 2010. The stock faced consistent pressure from 2013 to 2019, experiencing a prolonged period of decline. However, its tide shifted in August 2020, marking the beginning of an upward trend.

The stock finished CY20 with a gain of 30%, followed by an astounding return of 227% in the subsequent year, and it continued the same upward trend in CY22 as well, delivering another multi-bagger return of 101%.

In the current year, the shares have already yielded a return of 67.75%. Zooming out, over the past three years, the stock has witnessed an extraordinary surge of nearly 2158%, rallying from ₹7 apiece to the current market price of ₹158.10.

DB Realty is a real estate development company based in India. It is engaged in the development, construction, and sale of residential and commercial properties. The company's projects encompass a wide range of real estate offerings, including residential complexes, commercial spaces, and mixed-use developments.

For the June quarter, the company reported a net loss of ₹13 crore. For the fiscal year 2022–23, the company achieved a net profit of 36 crore, marking a substantial turnaround from the net loss of 75 crore in the previous fiscal year.

According to Trendlyne shareholding data, Rekha Jhunjhunwala owns 1.21% of the company, equivalent to 50,00,000 shares as of the end of Q1FY24. The company's promoters maintain the majority stake at 64%, and Foreign Institutional Investors (FIIs) hold a 1.9% stake in the company.

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