Rating service moves Ajmera Realty to Sell as sales fall sharply

A third-party rating service has cut its grade on Ajmera Realty & Infra India Ltd from Hold to Sell, with the change dated 28 October 2026. The Mumbai-based developer's shares have lagged the market this year, and its sales value fell sharply in the latest quarter.

Why the rating moved

The rating service MarketsMojo linked the downgrade to the company's recent share underperformance and to sector headwinds. It said the change reflects a more conservative outlook, and gave the stock a Mojo Score of 48.0. The service said the shares are no longer a deep value bargain but still look reasonably priced against earnings and book value. It pointed to risks including possible interest-rate increases, regulatory uncertainty in the realty sector and project-execution challenges.

On share performance, the service put the stock's year-to-date return at about minus 30.47%, against a fall of about 14.05% in the Sensex over the same period. Over one year the shares fell 33.67%, while the Sensex fell 13.45%. Over three years the stock rose 76.21%, against 14.84% for the index. The company is classed as small-cap, with a market capitalisation of about ₹2,280 crore as of 5 October 2026. The service gives a 52-week range of ₹98.10 to ₹221.23. Other market data shows a slightly different range, so readers should check exchange records before relying on either figure.

The service's valuation figures show a price-to-earnings ratio of 16.93 and a price-to-book ratio of 1.87. Return on capital employed is 14.75% and return on equity is 10.71%. Promoters hold 68.556% of the company and the public holds 19.032%, as of 5 October 2026.

Sales slowed in the latest quarter

The company's operational update, filed on 9 October 2026, shows second-quarter FY27 sales value of ₹224 crore. That is 69% lower than ₹720 crore in Q2 FY26. Carpet area sold fell 68%, to 72,883 sq ft from 2,29,772 sq ft a year earlier. Sales value rose 54% from ₹146 crore in Q1 FY27. Collections in the quarter were ₹190 crore, down 14% from ₹220 crore a year earlier.

For the first half of FY27, pre-sales were ₹370 crore across 1,16,620 sq ft, and collections were ₹363 crore. Half-year sales value fell 55%. The company said it had fully sold out Ajmera Prive, a completed residential project. Dhaval Ajmera, director of Corporate Affairs, said: "Q2FY27 delivered sustained sales momentum across our ongoing projects, supported by continued customer demand and disciplined execution."

The group's profile is larger than its recent sales. The company says it has delivered more than 46,000 homes and is developing 1.3 million sq ft. It has a further 1.7 million sq ft in the pipeline and an 11.1 million sq ft land bank. That land bank includes about 3.15 million sq ft at Wadala and 7.9 million sq ft at Kanjurmarg in Mumbai, to be developed in phases over four to seven years. Its residential projects in Mumbai include Manhattan in Wadala, Prive in Juhu and Solis in Vikhroli.

What investors will watch

• Whether the upcoming project launches and approvals the company described materialise in the second half of FY27. No dates have been given.
• Sales value in the next operational update against the ₹370 crore reported for the first half.
• Whether collections keep pace with sales. Collections for the first half were ₹363 crore.
• The rating service's next review. It has not announced a date.

The downgrade is a rating opinion, not a company disclosure, and it does not change the company's reported figures. The company has a record of redevelopment wins, including the Ascot Co-operative Housing Society project announced in March 2025, with estimated sales of about ₹320 crore. Investors will look for whether the next quarterly update shows sales recovering from the year-earlier base.