Godrej Properties shares surge 5% after acquiring 53-acre land in Kolkata

Shares of Godrej Properties surged up to 5 per cent at Rs 2,826.95 per share on the BSE in Thursday’s intraday trade after the company said that it has acquired  53-acre of land in Joka, Kolkata. 

 

The real estate developer said that the proposed project is estimated to have a development potential of 1.3 million square feet of saleable area comprising primarily residential plotted development with an estimated revenue potential of Rs 500 crore. 

 

The land is located in the developing micro-market of Joka, which is close to the main city and in proximity to Diamond Harbour, a well-known seaside weekend getaway. Joka has rapidly transformed into a promising residential hub in Kolkata, fuelled by infrastructure growth.

 

With IIM-Calcutta as an educational landmark, enhanced healthcare facilities, and commercial centres, Joka offers residents convenience and quality of life. On the back of strategic connectivity through Kolkata Metro’s Line 3 and extensive road networks, Joka is well-connected to key areas across the city, the company said in a press statement. 

 

“This land acquisition fits with our strategy of deepening our presence across India's leading cities. We will aim to build an outstanding plotted development project in Joka that creates long term value for its residents,” said Gaurav Pandey, MD & CEO, Godrej Properties. 

Q2 results

For the second quarter of financial year 2024-25 (Q2FY25), Godrej Properties reported a consolidated net profit of Rs 335 crore for the September quarter, a sharp increase from Rs 67 crore in the same period last year, driven by a tax write-back of Rs 169 crore.  

 

Revenue surged to Rs 1,093 crore from Rs 343 crore in the year-ago quarter.  

 

Despite a 2 per cent decline in the area sold to 5.15 million square feet, the booking value rose 3 per cent year-on-year to Rs 5,198 crore. Customer collections saw a significant 68 per cent growth, reaching Rs 4,005 crore.  

 

Godrej Properties share price history

The company’s stock has outperformed the market year to date as it has risen 33 per cent, while gaining 41 per cent in the last one year. In comparison BSE Sensex has risen 6.5 per cent year to date and 16.8 per cent in a year. 

 

The company has a total market capitalisation of Rs 74,321.83 crore. Godrej Properties shares are trading at a price to earnings multiple of 73.49 times and at an earning per share of Rs 36.61. 

 

At 10:46 AM; the shares of the company pared all its gains and slipped in red, down 0.64 per cent higher at Rs 2,672.85 a piece. By comparison, the BSE Sensex was down 0.75 per cent at 76,996.86 level.