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Real estate stock gains after company purchased land in Bengaluru to build residential apartments

Priya Singh | 2024-04-01

The shares of one of India’s largest real estate developers gained around 1.5 percent to Rs 2,027.10 per share after the company purchased four acres of land in Bengaluru to build residential apartments.
Godrej Properties Ltd shares were trading at Rs 2,011 per share, up Rs 10.25 or 0.51 percent on NSE from the previous close price. The company has a market capitalization of Rs 56,125 crore.
Godrej Properties purchased a around 4-acre land parcel on an outright basis in Bengaluru, near Yeshwanthpur abutting the National Highway – 75. The company said in its exchange filing.
The project is estimated to have a developable potential of approximately 0.7 million square feet of saleable area comprising primarily of premium residential apartments of various configurations with an estimated revenue potential of Rs 1,000 Crore with scope to increase to Rs 1,250 crore basis additional 1-acre land acquisition, making it overall around 5-acre parcel.

The Godrej Properties return on equity increased from 4.06 percent in FY22 to 6.16 percent in FY23, while the return on capital employed rose from 8.91 percent to 10.84 percent during the same period.
Godrej Properties shares have delivered returns of 28 percent in the last six months and 63 percent in a year.

The company’s revenue has increased by 108 percent yearly, from Rs 165 crore in Q2FY23 to Rs 343 crore in Q2FY24. In the same time frame, the company’s net profit declined by 3 percent, from Rs 109 crore to Rs 106 crore.
Godrej Properties Ltd (GP), a subsidiary of Godrej Industries Ltd, is engaged in the real estate business. The company constructs and develops residential, commercial, industrial, and township properties. The company’s residential properties include The Trees, Godrej 101, Godrej 24, Godrej Central, Godrej Azure, and Godrej Aqua.

In the September quarter of FY24, the company witnessed a total booking value of Rs 5,034 crore with 5.24 million sq. ft. of area. Additionally, the company launched 7 new projects.

Similarly, Collections grew by 23 percent to Rs 2,378 crore in Q2 FY24, leading to a net operating cash flow of Rs 811 crore in Q2 FY24.