Synopsis
Omaxe's shares hit a new 52-week low of Rs 71.81 amid increasing losses and falling sales, while equity indices Sensex and Nifty recorded significant gains. The company faces challenges, including a high debt-to-EBITDA ratio and consecutive quarterly losses.Key Takeaways
- Omaxe's stock reached a new 52-week low.
- Company faces operational losses and high debt.
- Record net loss of Rs 150.59 crore in Q3 FY25.
- Net sales decreased by 51.78 percent.
- Consumer disputes regarding flat possession delivery.
New Delhi, March 22 (NationPress) The shares of real estate firm Omaxe have plunged to a fresh 52-week low of Rs 71.81 this week, driven by escalating losses and dwindling sales. This decline comes as the benchmark equity indices, Sensex and Nifty, enjoyed their most significant weekly gains in nearly four years.
Previously, Omaxe's 52-week high was noted at Rs 162.45 per share on July 30 of the previous year.
On the final trading day of the week (Friday), Omaxe's shares opened at Rs 74.75 each. During the trading hours, the stock peaked at Rs 78.00 but also dipped to a low of Rs 74.41.
Ultimately, the company's stock concluded the trading session at Rs 77 per share, marking a slight increase of Rs 2.81 or 3.79 percent.
Omaxe is grappling with numerous hurdles, such as operational losses and a notably high debt-to-EBITDA ratio of 7.49 times. The company has recorded negative results for three consecutive quarters, with both net sales and profits experiencing a significant drop.
In the December quarter (Q3 FY25), Omaxe reported a net loss of Rs 150.59 crore, a staggering 109.82 percent decline from Rs 71.77 crore in the same quarter of the previous fiscal year (FY23).
The net sales for the October-December period were Rs 288.94 crore, reflecting a 51.78 percent decrease from Rs 599.21 crore in December 2023.
According to its financial report, EBITDA was negative at Rs 115.30 crore in December 2024, down 232.18 percent from Rs 34.71 crore in the December quarter of the last fiscal year.
In another development, the State Consumer Disputes Redressal Commission in Chandigarh instructed Omaxe Chandigarh Extension Developers Private Limited to compensate a homebuyer for failing to deliver possession of a flat in its ambitious housing project, despite a delay exceeding six years.
Omaxe, however, attributed the delay to “force majeure” (unforeseen circumstances), including legal challenges and the COVID-19 pandemic.
