Godrej Properties Shares Surge 3% on Q2 Business Update; Nuvama Upgrades to Buy
Godrej Properties, a leading real estate player, has seen its shares surge 3% to Rs 2,978.40 on the BSE. The stock's strong performance is driven by the company's Q2 FY25 business update, which showcases its highest-ever booking and collection values. Ana
Godrej PropertiesReal EstateQ2 ResultsNuvamaStock PerformanceReal Estate MumbaiOct 07, 2024
In an exchange filing dated October 4, Godrej Properties announced that its Q2 FY25 booking value grew 3% year-on-year to nearly Rs 5,200 crore, achieved through the sale of over 5.1 million square feet. This marks the highest-ever Q2 booking value in the company's history. Moreover, Godrej Properties posted its highest-ever H1 booking value in H1 FY25, with a growth of over 89% year-on-year to more than Rs 13,800 crore. This was accomplished through the sale of over 8,600 homes, covering a total area of over 14 million square feet.
Analysts at Nuvama Institutional Equities remain bullish on Godrej Properties and have upgraded the stock to 'Buy' from 'Hold', setting a target price of Rs 3,415 per share. The brokerage firm attributes this upgrade to the improved cash flows and the recent stock price correction. Nuvama analysts believe that the turning housing cycle will continue to drive strong sales momentum for Godrej Properties. They also note that the company has demonstrated a consistent operational scale-up through steady new launches and robust sales in these projects.
One of the key strengths of Godrej Properties is its geographically diversified development portfolio. The company has a significant presence in key markets such as Ahmedabad, Bengaluru, Mumbai, Pune, and NCR. This diversified portfolio has helped the company increase its market share in these city markets, driven by RERA regulations and the growing preference for organized developers among customers.
However, analysts also highlight some risks, including the company's low involvement in certain group MoUs and the rapid pace of portfolio expansion, which has strained cash flow. Despite these risks, the overall outlook for Godrej Properties remains positive.
Godrej Properties, established in 1990, is a pan-India real estate developer primarily focused on residential projects. As of October 7, 2024, the company's market capitalization stood at Rs 82,494.08 crore. Historically, Godrej Properties shares have shown mixed performance, appreciating 3.05% in the last one month, while dropping 10.22% in the last three months. In the last six months, the shares have yielded a return of 17.72%, and the year-to-date return stands at 47.23%.
At around 9 55 am on Monday, Godrej Properties shares were trading at Rs 2,940.35, up 1.47% from their previous close of Rs 2,897.70. Nearly 3.59 lakh shares of Godrej Properties, worth around Rs 106.37 crore, were exchanged on the BSE and NSE today.
Godrej Properties' strong performance and strategic approach to the market continue to position it as a leading player in the Indian real estate sector, with prospects for further growth and success.
Frequently Asked Questions
What is the recent performance of Godrej Properties shares?
Godrej Properties shares have surged 2.78% to Rs 2,978.40 on the BSE during early trade on Monday, following the company's Q2 FY25 business update.
What are the key highlights of Godrej Properties' Q2 FY25 performance?
Godrej Properties reported its highest-ever Q2 and H1 booking values, with a 3% year-on-year growth in Q2 to nearly Rs 5,200 crore and an 89% year-on-year growth in H1 to over Rs 13,800 crore.
Why did Nuvama upgrade Godrej Properties stock to 'Buy'?
Nuvama Institutional Equities upgraded the stock to 'Buy' due to improved cash flows, recent stock price correction, and the expected strong sales momentum driven by the turning housing cycle.
What are the key risks identified by Nuvama for Godrej Properties?
The key risks identified include the company's low involvement in certain group MoUs and the rapid pace of portfolio expansion, which has strained cash flow.
What is Godrej Properties' market capitalization as of October 7, 2024?
As of October 7, 2024, Godrej Properties' market capitalization stood at Rs 82,494.08 crore.
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