Mahindra Gesco Developers reported a net loss of Rs 1.52 crore for the fourth quarter ended March 2007 compared to a net profit of Rs 3.86 crore in the fourth quarter ended March 2006. Its net sales slipped to Rs 34 crore from Rs 42.4 crore in the previous year.
The stock had a pre-results’ rally. From Rs 594.30 on 19 April 2007, it shot up to Rs 675.50 by 25 April 2007, anticipating a strong set of results from the company. It is now quoting at Rs 615.
Mahindra Gesco is one of the larger players in the organised sector for property development and consulting. It plans to expand activities to all major cities in the country. Does this indicate a consolidation in Indian Real Estate ?