TARC shares jump as luxury real estate developer announces sell-out of Kailasa project

Luxury real estate developer TARC announced on Tuesday that its Kailasa 1.0 project has been sold out amounting to sales worth ₹1,400 crore. The extensive mix of buyers includes high-net-worth individuals, business entrepreneurs and top-tier professionals from sectors such as technology, finance and healthcare, the company said in a release.

TARC is focused on the development of luxurious residential projects in New Delhi and Gurugram. According to the company, the Kailasa project has witnessed a price appreciation of 25% since its launch in just a quarter. It is located at Patel Road, Kirti Nagar and offers 3.5 and 4.5 bedroom, hall and kitchen (BHK) luxury residences.

Amar Sarin, Managing Director and CEO of TARC considers the sellout of Kailasa 1.0 a significant achievement for the company. “People are looking for ultimate comfort coupled with security, parking ease and social infrastructure which has led to this trend of moving to high-end condominiums,” he said.

Shares of TARC were trading close to 3% higher on Tuesday. The stock has gained over 21% since the beginning of 2024 and has returned over 270% in the last one year.

During the third quarter, TARC had reported an 89% year-over-year drop in its revenue at ₹11.79 crore on a consolidated basis. It reported a net loss of ₹33.49 crore during the quarter compared to a net profit of ₹1.35 crore in the same period of previous fiscal.

The company had earlier stated in an investor presentation that it plans to fulfil a launch pipeline of approximately ₹6,600 crore in FY24. The company has also planned a similar pipeline of launches for FY25 and FY26 for its next phase of growth. TARC said that its launched and upcoming projects add up to meet its original sales guidance for FY24 of ₹1,500 crore. It has also raised its FY25 guidance to ₹5,000 crore from ₹2,500 crore.