You might have seen many stocks but you might not have seen moves like Eraaya Lifespaces Ltd. In one year, it increased from Rs 34 to Rs 2635 per share i.e. a return of 7,449% was seen. Not only this, the upper circuit in the stock is not showing signs of stopping.
Why was upper circuit imposed?
Eraaya Lifespaces Limited has announced a significant restructuring following the acquisition of Ebix Inc. The company has announced several major changes in its leadership and operations. Most importantly, Robin Raina has been suspended from all key posts due to the investigation into financial irregularities. The board of Eraaya Lifespaces has initiated a comprehensive investigation under a high powered steering committee.
business model
Eraaya Lifespaces is part of a larger conglomerate that is actively acquiring businesses across sectors. Which includes pubs, news channels, non-banking financial companies and even film production. Let us tell you that the company is also associated with the hospitality sector. In the name of physical assets, the company has three bungalows in Naukuchiatal, Lonavala and Goa. Eraaya Lifespaces is virtually debt free and this diversified portfolio looks to be a strong foundation for long term growth and resilience. The company has purchased stakes in Dubai-based clubs and event management companies, which not only reflects the company’s expansion plans but also brings in revenue.
fundamentals
The market cap of the company is Rs 4,845 crore. If we look at the growth of this stock, the stock price compound annual growth rate for the last 3 years is 520 percent. According to the quarterly results, the company reported net sales of Rs 2 crore in Q1FY25 and net profit increased by 1,887.5 per cent to Rs 0.95 crore in Q1FY25, while net profit stood at Rs 0.05 crore in Q1FY24.