 "Godrej Prop up 8% as it sells over 1K homes in Gurugram for Rs 3,000 crore")
Shares of Godrej Properties sprinted 7.5 per cent to Rs 2,692 per share, also its new 52-week high, on the BSE in Monday's intraday trade after the real estate player sold over 1,050 homes worth over Rs 3,000 crore within three days of launch of its new project at Gurugram, Haryana. Godrej Zenith, the company said, is GPL's largest residential development in Gurugram.
"Gurugram is an extremely important market for Godrej Properties, and we will look to further strengthen our presence in Gurugram in the years ahead," Gaurav Pandey, managing director and chief executive officer of Godrej Properties said in a statement.
The recently concluded financial year 2023-24 (FY24) saw a 473 per cent year-on-year increase in sales in Gurugram, the company said. Besides, this is the second time in Gurugram, and the fourth time pan India, that GPL has recorded sales of over Rs 2,000 crore during launch in FY24.
The Mumbai-based company sold inventory worth Rs 2,690 crore in its project, Godrej Reserve, located in Kandivali, Mumbai in Q4FY24. It also sold inventory worth over Rs 2,875 crore in its project, Godrej Aristocrat, located in Sector 49 on Golf Course Extension Road, Gurugram, and achieved sales worth over Rs 2,000 crore in its project, Godrej Tropical Isle in Noida
in Q2FY24.
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Going ahead, Godrej Properties said it has a strong launch pipeline for FY25 which includes new project launches planned in Sector 103, Sector 43, and Sector 54.
At 1:01 PM, shares of Godrej Properties were ruling 5.5 per cent higher at Rs 2,38 per share as against 0.75-per cent gain in the benchmark S&P BSE Sensex. The S&P BSE Realty index, too, was up 2.2 per cent.
Over the past one year, shares of GPL have more-than-doubled, zooming 115 per cent on the BSE, as against over 20 per cent rally in the benchmark Sensex index.
Operationally, Godrej Properties reported sales of Rs 5,700 crore with volume at 4.34mn sqft in the December quarter. Booking value was up 14 per cent Q-o-Q and 76 per cent Y-o-Y. Despite the 17 per cent Q-o-Q and 2 per cent Y-o-Y drop in sales volume, booking value was robust, primarily led by high realisation in NCR market where GPL launched Godrej Aristocrat in Q3.
This was GPL's most successful ever launch, achieving a booking value of Rs 2,667 crore and high average realisation of Rs 19,700/sqft.
"The execution gap to peers is narrowing and remains on track to deliver on FY24 guidance of 12.5msf in project completion. High value project pipeline, improving micro market selection, and rising economic share is set to aid margin and cashflow profile. We align our quarterly presales run-rate to the underlying print of Rs 5000 crore driving a 30 per cent change presales forecast for FY24E-FY26E," said analysts at Dolat Capital post the result update. They retained 'Accumulate' rating on the stock. The brokerage's target price of Rs 2,650 is now below the current market price.
GPL's sales velocity in four key markets has been healthy and may improve further, led by its strategy to enter other micro markets and given its strong launch pipeline, analysts said. However, while it continues to implement its robust business development plan, the consequent increase in debt levels warrant close monitoring in the near-term, they added.
