Godrej Properties shares surge 3% on Q2 biz update; Nuvama upgrades to Buy

Godrej Properties shares zoom: Shares of leading real estate player Godrej Properties jumped 2.78 per cent to Rs 2,978.40 on the BSE during early trade on Monday. The upward movement followed the company's announcement that it achieved its highest-ever Q2 and H1 performance across several key operational parameters, including bookings, collections, operating cash flow, and new business development.

In an exchange filing dated Friday, October 4, Godrej Properties stated that its Q2 FY25 booking value grew 3 per cent year-on-year to nearly Rs 5,200 crore from the sale of over 5.1 million square feet. This marks the highest-ever Q2 booking value achieved by the company.

 

The company also posted its highest-ever H1 booking value in H1 FY25, with a growth of over 89 per cent 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.

Nuvama on Godrej Properties

That said, analysts at the brokerage firm Nuvama Institutional Equities remain bullish on Godrej Properties and have upgraded the stock to 'BUY' from 'HOLD' with a target price of Rs 3,415 per share, factoring in improved cash flows and the recent stock price correction.

With the housing cycle turning, analysts at Nuvama expect sales momentum to remain strong. According to the analysts, the company has demonstrated continued operational scale-up through steady new launches and robust sales in these projects. There has also been steady growth in GPL’s development portfolio through value-accretive Joint development agreement/ joint venture (JDA/JV) deals in key city markets.

Analysts highlighted that Godrej Properties boasts a geographically diversified development portfolio. Additionally, the company's increasing market share in key city markets—driven by RERA regulations and the shift in customer preference toward organised developers—will work in its favor, according to the analysts.

Key risks, analysts believe include the company's low involvement in certain group MoUs and the rapid pace of portfolio expansion, which have strained cash flow.

Godrej Properties (GPL), established in 1990, is a pan-India real estate developer primarily focused on residential projects. It has a development portfolio with significant exposure to key markets such as Ahmedabad, Bengaluru, Mumbai, Pune, and NCR. As of October 7, 2024, Godrej Properties' market capitalization stood at Rs 82,494.08 crore.

Godrej Properties shares have a 52-week range of Rs 3,400-1,548 on the BSE.

Historically, Godrej Properties shares have exhibited mixed performance. The realty stock has appreciated 3.05 per cent in the last one month, while it dropped 10.22 per cent in the last three months. Meanwhile, in the last six months, Godrej Properties shares have yielded a return of 17.72 per cent, and the year-to-date return stands at 47.23 per cent.

At around 9:55 am on Monday, Godrej Properties shares were trading at Rs 2,940.35, up 1.47 per cent 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.