The Indian residential and commercial projects industry is experiencing significant growth, with residential sales projected to reach 320,000 units in 2024. In H1 2024 alone, over 160,000 residential units were launched, marking a 5% increase from the previous year, driven by urbanization and rising demand for premium properties.
With a market capitalization of Rs 84,523.93 crore, the shares of Godrej Properties Ltd were trading at Rs 3,039.75 per share, decreasing around 1 percent as compared to the previous closing price of Rs 3,068.25 apiece.
Brokerage Reccomdation:-
Investec, one of the well-known brokerages globally, gave a ‘Buy’ call on the Real estate stock with a target price of Rs 4,200, indicating a potential upside of 38 percent from Friday’s price of Rs 3,039.75 per share.
Recommendation Rational:-
Investec emphasized the company’s outstanding development potential and strategic diversification across geographies, which reduces its reliance on a single market. The brokerage underscored Godrej Properties’ excellent brand awareness, which supports consistent sales performance.
Recent approvals:-
Godrej Properties accepted a plan earlier this week to raise up to Rs 6,000 crore in new cash using a range of instruments as part of its larger capital-raising strategy. The decision, subject to shareholder acceptance, was confirmed at the company’s board meeting held on October 1, 2024, according to the company’s stock exchange notification.
Moreover, the real estate business will issue capital in one or more tranches, which may comprise the issuing of equity shares, completely and partially convertible debentures, non-convertible debentures (with or without warrants), and preference shares convertible into equity shares, among other acceptable instruments.
Market outlook:-
India’s residential real estate sector is experiencing robust growth, with management optimistic about strong future earnings driven by favorable business development. Successful projects include Godrej Woodscapes in Bengaluru, achieving booking values of ₹3,156 crores, and Godrej Jardinia in Noida, securing ₹2,377 crores.
Project Execution:-
The management has focused on enhancing execution capabilities by hiring top contractors and strengthening internal teams to handle increased project scale. The company’s site head operating model, a unique structure, ensures effective project execution, supporting successful delivery across multiple large-scale developments.
Strategic Focus:
The company remains focused on its top four markets Mumbai, NCR, Bangalore, and Pune with plans for new launches. While cautiously optimistic about Hyderabad due to its rapid growth, management also explores opportunistic deals in Tier 2 cities, particularly focusing on plotted developments while prioritizing core markets.
Company profile:-
Godrej Properties Limited is an India-based company that is engaged primarily in the business of real estate construction, development, and other related activities. The Company operates through the development of the real estate property segment. It operates through the Godrej brand.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
