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By Dalal Street Investment Journal (DSIJ)
Omaxe Ltd share price hit the 20% upper circuit mark on June 29. The company announced a dedicated hospitality vertical with an investment plan of ₹6,200 Crore. The developer plans to build 19 hotels across five states over the next 4-5 years, aiming to strengthen its presence in tourism, business travel, and religious tourism.
Omaxe share price hit the 20% upper circuit on Monday, June 29, after the company announced a major expansion into the hospitality sector.
The share price opened at ₹77.40, marginally lower than the previous close price of ₹77.48. While buying interest began picking up early in the session, the upward momentum intensified as the trading day progressed. Eventually, at 1:55 PM IST, the stock hit its 20% upper circuit limit of ₹92.97.
The sharp rise came after investors reacted positively to the company's plans to create a dedicated hospitality business vertical and expand its presence in the hotel industry.
Omaxe Ltd said it plans to develop 19 hotels across five states over the next four to five years. The projects will cover nearly 5 million sq. ft. of development area.
The company proposes to invest around ₹6,200 crore in a phased manner. The investment remains subject to project-specific approvals, regulatory clearances and market conditions. According to the company, the new hospitality business will focus on high-growth urban centres, religious destinations and key transit locations.
A large part of the expansion will take place in Uttar Pradesh. Out of the planned 19 hotels, 12 are expected to come up in the state.
The proposed portfolio includes two hotels in Ayodhya and three in Lucknow. The company also plans one hotel each in Prayagraj, Ghaziabad and Gorakhpur. In addition, two hotels are proposed in Kaushambi and two in Vrindavan.
Beyond Uttar Pradesh, Omaxe plans to develop one hotel each in New Delhi, Faridabad and Ujjain. Four more hotels are planned across Punjab and Chandigarh, including properties in Amritsar and Ludhiana, alongside two flagship assets in Chandigarh. Once completed, the company will have a hospitality presence across 13 cities in five states.
The announcement signals Omaxe's intention to diversify beyond its traditional real estate business and build a long-term presence in the hospitality sector.
Additionally, the company expects the hospitality business to become a meaningful contributor over time. Based on current assumptions and subject to project execution, occupancy levels and market conditions, Omaxe believes the new business could generate around ₹1,000 crore in annual revenue after stabilisation.
Established in 1987, Omaxe Ltd is one of India's well-known real estate developers. The Omaxe Group has delivered around 140.17 million sq. ft. of real estate across 31 cities in eight states. Its portfolio includes residential projects, commercial developments and integrated townships. The company has a presence in Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan, Delhi, Uttarakhand and Himachal Pradesh.
Source: Dalal Street Investment Journal
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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