Marathon Nextgen hits 4-year high in a weak market; zooms 63% in one month

In the past six months, the stock price of Marathon Nextgen has rallied 85 per cent as against 9 per cent decline in the S&P BSE Sensex index

Shares of Marathon Nextgen Realty hit a four-year high of Rs 194.85, soaring 12 per cent on the BSE in Monday's intra-day trade, in an otherwise a weak market. The stock of the residential and commercial projects' company was trading at its highest level since June 2018. In comparison, the S&P BSE Sensex was down 2.6 per cent at 52,892 points.

In the past one month, the stock price of the real estate company has zoomed 63 per cent as against 0.17 per cent rise in the benchmark index. On May 18, 2022, the board had approved the allotment of 4.8 million convertible warrants at price of Rs 135 per warrant as a preferential issue to promoters (3.2 million warrants) and certain identified non-promoter persons (1.6 million warrants).

"Convertible warrants for cash, with a right to apply for and get allotted, within a period of 18 months from the date of allotment of warrants, one equity share of face value of Rs 5 each for each warrant. The option for conversion is available only upon payment of full price of the convertible warrants," Marathon Nextgen had said in an exchange filing.

Meanwhile, for the quarter ended March 2022 (Q4FY22), the company had reported robust performance by reporting consolidated net profit of Rs 23.26 crore, as against loss of Rs 7.57 crore in the year-ago quarter. Revenue from operations more-than-doubled to Rs 165 crore from Rs 69 crore in Q4FY21.

In the past six months, the stock price of Marathon Nextgen has rallied 85 per cent as against 9 per cent decline in the S&P BSE Sensex.

Marathon Nextgen Realty (MNRL) and Marathon Realty Private Limited (MRPL) are together executing three projects -- Marathon Futurex (commercial), Marathon Embrace (residential) and Marathon Carlo & Plaza (commercial and residential) -- altogether admeasuring 2.09 million square feet (lsf) of saleable area at total estimated project cost of Rs 2,068 crore .

MNRL's project Marathon Futurex is located in Lower Parel, Mumbai, which is one of the prime and well-established residential and commercial locations. The other two projects of the group are also located in Bhandup and Mulund area in the Mumbai Metropolitan Region which are also favourable locations.

"The timely execution of the projects within envisaged cost and timely realization of envisaged customer advances in order to meet the required fund for execution. The improvement in the percentage of committed receivable to cover balance project cost and outstanding debt to 50 per cent or more on a sustained basis and the significant improvement in the overall capital structure (including corporate guarantee) of the group on sustained basis are key positive factors that could lead to positive rating action/upgrade," CARE Ratings had said in rationale on December 14, 2021.