Shares of Godrej Properties saw a notable surge of 5% in intraday trading, reaching ₹2,826.95 on the BSE, following the company's announcement about acquiring a 53-acre land parcel in Joka, Kolkata. This acquisition is expected to have significant implications for the real estate market, further reinforcing the company's growing presence in key urban areas.
Strategic land acquisition in Joka, Kolkata
Godrej Properties revealed that the newly acquired land in Joka is slated for residential development with a potential saleable area of 1.3 million square feet. The project is expected to generate approximately ₹500 crore in revenue. Located in a rapidly developing part of Kolkata, Joka is becoming increasingly popular as a residential destination. The area benefits from its proximity to the city centre and Diamond Harbour, a well-known weekend getaway.
The Joka region has undergone rapid infrastructure development, including better connectivity and improved local amenities, making it an attractive spot for homebuyers. With the presence of prestigious institutions like IIM-Calcutta, as well as enhanced healthcare and commercial facilities, Joka offers residents a high quality of life and convenience. The development of Kolkata Metro Line 3 and an expanding road network further improves the area's accessibility, adding value to the land acquisition.
Godrej Properties' expansion plans and future goals
In a statement, Gaurav Pandey, MD & CEO of Godrej Properties, expressed confidence that this land acquisition aligns with the company’s broader strategy to strengthen its position in India’s top cities.
The company plans to develop a premier residential plotted project in Joka that will provide long-term value to its residents. This development reflects Godrej Properties’ ongoing commitment to creating high-quality, sustainable living spaces in emerging markets across India.
Positive Q2 performance and financial growth
Godrej Properties also reported strong financial results for the second quarter of FY25. The company saw a remarkable growth in net profit, which reached ₹335 crore, a significant increase from ₹67 crore in the same period last year. This surge was largely attributed to a tax write-back of ₹169 crore. Revenue for the quarter climbed to ₹1,093 crore, up from ₹343 crore in the previous year.
While the area sold during the quarter declined by 2% to 5.15 million square feet, the booking value saw a 3% increase year-on-year, totalling ₹5,198 crore. Moreover, customer collections surged by 68%, reaching ₹4,005 crore, reflecting strong demand and a robust market response to the company’s offerings.
Stock performance and market outlook
Over the past year, Godrej Properties has outperformed the broader market, with its stock price rising by 41%. Year-to-date, the stock has gained 33%, which significantly outpaces the 6.5% increase in the BSE Sensex. Currently, the company's market capitalisation stands at ₹74,321.83 crore. At a price-to-earnings ratio of 73.49 and earnings per share of ₹36.61, the stock continues to be a strong performer in the real estate sector.
Despite a brief dip later in the session, Godrej Properties shares remained relatively resilient, closing down just 0.64% at ₹2,672.85, while the BSE Sensex was down by 0.75%. This highlights the company’s strong market position, even amid broader market fluctuations.
Should you invest in stocks like Godrej Properties?
Given the strong performance of Godrej Properties, both in terms of financial growth and market sentiment, it presents an attractive opportunity for investors looking to diversify their portfolios. Those seeking to invest in stocks may find this company’s consistent growth and strategic land acquisitions a compelling reason to consider adding it to their investment strategies.
As Godrej Properties continues to expand its footprint across major cities, its stock could continue to deliver long-term value to investors.
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