Godrej Properties surges 8%, hits new high on strong Q4 business update

The company reported highest-ever quarterly sales announced to date by any publicly listed real estate developer in India

Shares of Godrej Properties hit a new high of Rs 2,788.75 as they surged 8 per cent on the BSE in Tuesday's intraday trade after the real estate company said its bookings grew 135 per cent year-on-year (Y-o-Y) to over Rs 9,500 crore in the January-March quarter (Q4FY24).

This is the highest-ever quarterly sales announced to date by any publicly listed real estate developer in India, the company said in an exchange filing. This was achieved through the sale of 5,331 homes with a total area of over 8 million sq. ft, it added.

On the bourses, the stock is trading higher for a third straight day, rising 16 per cent during the period, after Godrej Properties said it sold over 1,050 homes worth over Rs 3,000 crore within three days of the launch of its new project at Gurugram, Haryana. In the past three weeks, it has zoomed 30 per cent.

In FY24, Godrej Properties' bookings grew 84 per cent Y-o-Y to over Rs 22,500 crore. This was 61 per cent above the guidance provided at the start of the year, and was achieved through the sale of 14,310 homes with a total area of 20 million sq. ft.

The company said sales were driven by superlative consumer demand in some key new project launches. Godrej Zenith in NCR achieved a booking value of more than Rs 3,000 crore and Godrej Reserve in MMR achieved a booking value of Rs 2,690 crore. Both of these projects were the best-ever launches for GPL in the respective markets.

The management said the company continues to have a strong launch pipeline for the current year, which will also be bolstered by its recent entry into the important Hyderabad market.

In the past one year, the stock price of Godrej Properties has zoomed 127 per cent as compared to the 25 per cent rise in the S&P BSE Sensex.

The company had reported the strong operating performance in April to December period (9MFY2024) as reflected by healthy growth in sales, collections and cash flow from operations (CFO). The same is expected to sustain the trend in Q4FY24 and FY25, driven by robust project launch pipeline, likely healthy sales velocity in the upcoming launches, backed by continued end-user demand, according to analysts.

GPL has strong business development plans for supporting its growth momentum. Rating agency Icra estimates the collections to remain healthy in excess of Rs 10,000 crore in FY24 and grow by 12-14 per cent in FY25.

"Godrej Property's liquidity is strong with Rs 2,837 crore free cash and liquid investments as of December 2023. We expect the liquidity position to remain strong in the medium-term, given the healthy cash flow operations. There are no scheduled debt repayments for Q4FY24 and FY25," the rating agency said in its rationale.