Arvind Smartspaces looks smart

Shares of Arvind SmartSpaces traded higher in Monday’s session after the company announced the acquisition of a new premium residential high-rise project in Vastrapur, Ahmedabad. The stock rose as much as 5.39% to an intraday high of Rs 624.95 before paring gains to trade around Rs 605 at 9:25 AM, up 2.03%, versus a 0.35% rise in the BSE Sensex near 86,006.

The project, acquired on an outright basis, has an estimated saleable area of about 3.6 lakh sq ft and a top-line potential of roughly Rs 400 crore, and represents Arvind SmartSpaces’ 24th project in Gujarat and a premium addition in one of West Ahmedabad’s most established micro-markets.

Proximity to IIM Ahmedabad, Vastrapur Lake, major malls and business hubs such as Navratna and Pinnacle should support pricing power, reinforcing the company’s broader strategy of focusing on infill, mid-to-premium residential projects in established demand corridors rather than peripheral greenfield bets.

From a portfolio perspective, the new Vastrapur deal follows the recently announced Rs 700 crore horizontal development in Vadodara, which marked the company’s 23rd project in Gujarat and underscored its state-wide expansion.

Against FY25 annual sales value of Rs 1,271 crore and new project additions with an expected topline of about Rs 4,450 crore, the latest Rs 400 crore addition is meaningful but not transformational, pointing to a steady deepening of the launch pipeline rather than a step-change.

The company now oversees roughly 108 million sq ft of development potential across Ahmedabad, Gandhinagar, Bengaluru, MMR and Pune, giving it room to balance its high Gujarat exposure with other urban markets over time.

For investors, Monday’s move largely reflects optimism around sustained deal flow and visibility on premium launches rather than any immediate change to near-term earnings. Outright land buys like Vastrapur can support stronger control over product and phasing but are more capital-intensive than pure JDAs, so the Street will watch execution, cash-flow discipline and margin profile on this and the Vadodara project. With the stock already re-rating on strong bookings, collections and a deepening pipeline, the bias in the near term is likely to remain event- and news-flow driven, with valuation comfort and regional concentration risk forming the key counterpoints in an otherwise solid growth narrative