Two Major Real Estate Stocks Soar After Reporting Impressive 120% YoY Sales Growth
India's construction industry is on the rise, with a projected expansion of 11.2% in 2024, reaching a market value of Rs. 25,316 billion. Two leading real estate companies, Godrej Properties Limited and Macrotech Developers Limited, have reported signific
Real EstateStock MarketSales GrowthConstruction IndustryIndian Real EstateReal Estate MumbaiOct 07, 2024
Two key players in the Indian real estate sector, Godrej Properties Limited and Macrotech Developers Limited, have reported impressive performance in Q2FY25, marking a 120% YoY increase in sales growth.
Godrej Properties Limited
Godrej Properties Limited, with a market capitalization of Rs. 80,511.49 crores, opened the trading session at Rs. 2,926.00, which is nearly 1% above the previous close of Rs. 2,897.45. The stock reached an intraday high of Rs. 2,976.95, reflecting a 2.74% increase from the previous close.
The company specializes in developing residential, commercial, retail, and IT projects in cities such as Mumbai, Pune, Bangalore, Kolkata, and Hyderabad. Their focus includes residential, townships, commercial complexes, office spaces, business centers, IT Parks, and technology parks.
According to its exchange filing, Godrej Properties Limited delivered its highest-ever performance for Q2 and H1 of FY25. The company reported record bookings of Rs. 5,200 crores in Q2FY25, along with a 68% year-on-year (YoY) growth in collections, reaching Rs. 4,000 crores. Additionally, the company achieved an operating cash flow of Rs. 1,800 crores, representing a remarkable 120% YoY growth.
The company management anticipates total bookings of around Rs. 10,200 crores in FY25 and has achieved 51% of its annual guidance. It has also achieved 47% of its annual guidance for collections, which stands at around Rs. 14,900 crores.
For Q1FY25, the company reported a net profit increase of 288% to Rs. 518.8 crores compared to a net profit of Rs. 133.69 crores in Q1FY24, while revenue from operations marked a decrease by 21% to Rs. 739 crores from Rs. 936.09 crores in the same period.
Macrotech Developers Limited
Macrotech Developers Limited, with a market capitalization of Rs. 1,20,424.09 crores, opened the trading session at Rs. 1,204.95, 2.70% above the previous close of Rs. 1,173.25. The stock reached an intraday high of Rs. 1,222, reflecting a 4.15% increase from the previous close.
Macrotech Developers Limited (formerly Lodha Developers Limited) is an Indian multinational real estate company. The company develops residential and commercial properties in Mumbai, Thane, Hyderabad, Pune, and London.
As per its exchange filing, Macrotech Developers Limited achieved its highest-ever pre-sales figures of Rs. 4,290 crores in Q2FY25, reflecting a 21% year-on-year (YoY) growth, aligning with the company's plans to achieve a 20% pre-sales growth in FY25. Collections also saw an 11% YoY increase, amounting to Rs. 3,070 crores.
Additionally, the company added four new projects in Bangalore and Pune during Q2FY25, with a total estimated value of Rs. 5,500 crores of GDV. The business development for the first half of the fiscal stands at Rs. 16,600 crores, which is more than 75% of the full-year guidance of Rs. 21,000 crores.
For Q1FY25, the company reported a net profit increase of 165% to Rs. 475.9 crores compared to a net profit of Rs. 179.2 crores in Q1FY24, while revenue from operations marked an increase of 75.99% to Rs. 2,846.5 crores from Rs. 1,617.4 crores in the same period.
Conclusion
The robust performance of Godrej Properties Limited and Macrotech Developers Limited in Q2FY25 indicates a strong upward trend in the Indian real estate sector. Both companies have shown significant improvements in their financial metrics, reflecting the growing demand for residential and commercial properties in key urban centers. Investors should remain cautious while considering these stocks, as the real estate sector is subject to market fluctuations and regulatory changes. It is advisable to consult a financial advisor before making investment decisions.
Frequently Asked Questions
What is the market capitalization of Godrej Properties Limited?
Godrej Properties Limited has a market capitalization of Rs. 80,511.49 crores.
What was the intraday high of Macrotech Developers Limited during the opening of the trading session?
Macrotech Developers Limited reached an intraday high of Rs. 1,222 during the opening of the trading session.
What is the projected compound annual growth rate (CAGR) for the Indian construction industry from 2024 to 2028?
The projected compound annual growth rate (CAGR) for the Indian construction industry from 2024 to 2028 is 9.4%.
What is the estimated value of the new projects added by Macrotech Developers Limited in Bangalore and Pune?
The estimated value of the new projects added by Macrotech Developers Limited in Bangalore and Pune is Rs. 5,500 crores of GDV.
What was the net profit increase for Godrej Properties Limited in Q1FY25 compared to Q1FY24?
Godrej Properties Limited reported a net profit increase of 288% to Rs. 518.8 crores in Q1FY25 compared to a net profit of Rs. 133.69 crores in Q1FY24.
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