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Godrej Properties Ltd Shares Touch Rs 3,000 Mark for the First Time

20 June 20244 mins read by Angel One
This article explores the factors behind the recent surge in Godrej Properties Ltd shares, driven by robust sales bookings and a strong performance in the real estate sector.
Godrej Properties Ltd Shares Touch Rs 3,000 Mark for the First Time
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Shares of Godrej Properties Ltd, largest developer in India by the value and volume of residential sales achieved, have touched the Rs 3,000 mark for the first time, marking a significant milestone for the company. This achievement is underpinned by a remarkable increase in sales bookings and a buoyant real estate market.

According to data released by companies to exchanges, eighteen major listed realty firms reported combined sales bookings of about Rs 1,16,635 crore in the 2023-24 fiscal, up 33% from nearly Rs 88,000 crore in the preceding year. Godrej Properties emerged as the largest player, posting Rs 22,527 crore of sales bookings, a significant contributor to this growth.

Strong Sales Bookings

The bulk of these combined sales bookings came from the residential segment, driven by strong demand for residential properties, especially luxury homes across major cities. This post-pandemic surge in housing demand has favoured companies with a proven track record of executing projects efficiently, benefiting Godrej Properties significantly. The company’s share price journey reflects this growth, with notable milestones being Rs 1,000 on June 24, 2019, Rs 2,000 on September 20, 2021, and now Rs 3,000 on June 10, 2024.

Date Price crossing (Rs) Time Taken (Days)
Jun 24, 2019 1,000 3,458
Sep 20, 2021 2,000 819
Jun 10, 2024 3,000 994

FY24 Financial Performance

In FY24, Godrej Properties reported its highest-ever quarterly and annual net profit. The company’s net profit for the March quarter rose by 14% annually to Rs 471.26 crore, up from Rs 412.14 crore in the previous year. Total income for the quarter increased to Rs 1,914.82 crore from Rs 1,838.82 crore. For the entire fiscal year, net profit rose to Rs 725.27 crore from Rs 571.39 crore in the preceding year, with total income rising to Rs 4,334.22 crore from Rs 3,039 crore. Sales bookings more than doubled to Rs 9,519 crore in the January-March quarter of FY24, with an annual growth of 84% to Rs 22,527 crore.

Operational Achievements

Godrej Properties achieved its highest-ever annual project deliveries, with projects aggregating to 12.5 million square feet delivered in the last fiscal year. Executive Chairperson Pirojsha Godrej highlighted the robust performance, noting the best-ever bookings, cash collections, earnings, and deliveries, alongside strong business development. The company expects sales bookings to rise to over Rs 27,000 crore in 2024-25, driven by new project launches and strong sustenance sales.

Comfortable Financial Profile

The shareholding pattern of Godrej Properties indicates growing investor confidence. Foreign institutional investors increased their holdings to 29.67% in March 2024 from 27.09% in March 2023, while domestic institutional investors increased their holdings to 5.56% from 4.69%. The company’s compounded annual sales growth over 10 years stands at 10%, with a compounded annual profit growth of 18%. The 10-year stock price compounded annual growth rate is 28%, and the 10-year return on equity is 5%.

Stock Performance

Shares of Godrej Properties traded at a new 52-week high of Rs 3,049.00 and are currently trading at Rs 3,015.30 per piece, up 2.96% from the previous closing price. The shares have seen a spurt in volume by more than 1.51 times. Year-to-date returns for the shares stand at 50.27%, while one-year returns are at 104.62%. Over a 10-year period, the stock has delivered a staggering return of 1151.06%.

Conclusion

The recent surge in Godrej Properties Ltd shares to Rs 3,000 marks a significant achievement, reflecting the company’s robust financial performance, strong sales bookings, and strategic focus on sustainable development. The company’s ability to deliver substantial project completions, combined with prudent financial management, positions it well for continued growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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