Tag: Godrej Properties

Godrej Properties, Kolte Patil get thumbs up from analysts even at record levels

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Despite trading at record-high levels, analysts at brokerage firms are endorsing real estate developers Godrej Properties Ltd. and Kolte-Patil Developers Ltd.

On Wednesday, Godrej Properties shares opened almost flat at ₹2,715.75 apiece on the NSE. The stock on April 9 gained more than 5% to hit an all-time high level of ₹2,791.20 following its strong business update in the fourth quarter of financial year 2024.

Global broking firm Jefferies has maintained a ‘Buy’ rating with an increased price target of ₹3,175 per share from ₹2,700 apiece earlier. This implies a potential upside of 17% from the current market levels.

Godrej Properties has sold homes worth ₹22,500 crore in the financial year 2024, a growth of 84%, compared to last year and 61% higher than the initial guidance provided by the company at the start of the year. This is also the highest-ever annual sales announced to date by any publicly listed real estate developer in India.

During the fourth quarter, Godrej Properties’ bookings grew by 135% from last year to over ₹9,500 crore.

Jefferies expects this momentum to continue. Additionally, it said that timely land acquisitions, and Hyderabad entry, imply FY25 can see growth over a high base.

The foreign brokerage expects much higher margins as these new projects by Godrej Properties get executed.

Meanwhile, shares of Kolte-Patil Developers jumped nearly 5% in morning trade on Wednesday as domestic brokerage house Motilal Oswal is bullish on the company based on its steady performance, healthy balance sheet and strong pipeline.

Motilal initiated coverage on the stock with a ‘Buy’ rating and a price target of ₹700 on the Kolte Patil stock, suggesting a further upside of 34%.

After a decade of muted performance, Kolte Patil is witnessing strong growth in pre-sales as bookings reported a 36% CAGR over FY21-23. “Given its strong pipeline, we believe the company can maintain 25% CAGR in pre-sales at least for the next two years with further room for growth from new project additions,” Motilal noted.

The brokerage highlighted that Kolte-Patil Developers now has a robust project pipeline and ample balance sheet capacity to target new projects and maintain growth. The company aims to achieve a pre-sales CAGR of 25% in the medium term.

The company’s project pipeline is around 33 msf, which includes 3.5 msf of ongoing inventory, 11.5 msf of upcoming projects, and 18 msf of future pipeline.

The brokerage highlighted that Kolte Patil has often focused on maintaining a strong cash flow and revenue growth. Over the past few years, this has resulted in the company seeing a steady stream of post-tax operating cash flow of ₹400-500 crore over the last four years.

However, Motilal pointed out that some key risks to its upside would be any possible inability to add new projects as intended, which will hurt future
growth. If the demand momentum sees a slowdown, it will lead to a reduction in the brokerage’s pre-sales estimates and also a reduction in spending on new project additions.

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Godrej Properties sells homes worth ₹22,500 crore in FY24; beats guidance by 61%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Godrej Properties Ltd., the Mumbai-based real estate developer has sold homes worth ₹22,500 crore in financial year 2024, it said in an exchange filing. The figure is a growth of 84% compared to last year and 61% higher than the initial guidance provided by the company at the start of the year.

This is the highest ever annual sales announced to date by any publicaly listed real estate developer in India, Godrej Properties said.

For the March quarter, Godrej Properties’ bookings grew by 135% from last year to over ₹9,500 crore. It sold 5,331 homes with a total area of over 8 million square feet during the last three months of the financial year.

Godrej Properties sold 14,310 homes with a total area of over 20 million square feet for the financial year gone by. The highest ever quarterly sales for Godrej Properties came from the Mumbai Metropolitan Region where it sold homes worth over ₹4,000 crore.

The real estate developer attributed the sales to strong consumer demand in some new project launches. On Monday, the company achieved a booking value of over ₹3,000 crore in “Godrej Zenith” in NCR, while last week, it reported a ₹2,600 crore booking from “Godrej Reserve” project in Mumbai’s Kandivali suburb.

Both of these projects were the best ever launches for Godrej Properties in their respective markets.

Godrej Properties bookings in the NCR region nearly tripled to over ₹10,000 crore, while that in Mumbai Metropolitan Region doubled to over ₹6,500 crore.

“This sales growth was on the back of both an improving product mix as well as strong volume growth of 31%,” Godrej Properties CEO Gaurav Pandey said. “We continue to have a strong pipeline for the current year which will also be bolstered by our recent entry in the Hyderabad market,” he added.

These numbers come after Bengaluru-based Prestige Estates reported their financial year 2024 sales figures of over ₹21,000 crore and also surpassed its own guidance of ₹20,000 crore in sales.

Shares of Godrej Properties have opened 6% higher on Tuesday morning and are trading at a record high of ₹2,751.

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Godrej Properties’ Gurugram project sells homes worth ₹3,000 crore in three days

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai-based real estate developer Godrej Properties Ltd. sold homes worth ₹3,000 crore within three days at the launch of its project “Godrej Zenith” in Haryana’s Gurugram, it said in an exchange filing.

This has now become the company’s most successful launch ever in both value and volume terms. Godrej Properties sold 1,050 homes with over 2 million square feet of area in the project.

For the second time in Gurugram in financial year 2024 and the fourth time pan-India, Godrej Properties has recorded launch sales in excess of ₹2,000 crore.

“Godrej Zenith” is the company’s largest residential development in Gurugram. For financial year 2024, Godrej Properties reported a 473% increase in sales for the Gurugram market and it already has a strong launch pipeline for financial year 2025.

Last week, Godrej Properties had sold inventory worth over ₹2,690 crore for its “Godrej Reserve” project in Mumbai’s Kandivali suburb. Among the other two instances of Godrej Properties recording sales in excess of ₹2,000 crore include the “Godrej Aristocrat” project in Gurugram where it had sales worth ₹2,875 crore and Noida’s “Godrej Tropical Isle,” where sales were greater than ₹2,000 crore.

Last month, the company had announced that it will develop a residential project in Bengaluru with a booking potential worth over ₹5,000 crore.

Brokerage firm Morgan Stanley upgraded Godrej Properties to “overweight” and also raised its price target on the stock to ₹2,500 from ₹2,050. It expects the company to grow faster in terms of pre-sales.

Shares of Godrej Properties are trading at a record high, up 5.2% at ₹2,637. The stock has doubled over the last 12 months.

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Godrej Properties sells homes worth ₹2,690 crore at Kandivali project launch

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Godrej Properties Ltd. gained over 4% to hit a day’s high of ₹2,512.95 on Friday (April 5) after the real estate developer said it has sold homes worth ₹2,690 crore, during the launch of its Kandivali project in Mumbai — Godrej Reserve.

This is Godrej’s most successful launch ever in Mumbai in terms of the value and volume of sales achieved, the company said in a regulatory filing.

Godrej Reserve has a developable potential of 3.72 million square feet with an estimated revenue potential of approximately ₹7,000 crore (on the basis of the current business assumptions).

The realty company said this project has significant unlaunched inventory remaining, which it plans to sell in the coming years. “This is one of GPL’s largest residential developments and significantly enhances its presence in the western suburbs of Mumbai,” it said.

“We are delighted with the response to our project, Godrej Reserve. This has now become the best-ever launch in Mumbai residential real estate. We’d like to take this opportunity to sincerely thank our customers and all stakeholders for their trust and confidence in Godrej Properties. We will do our best to ensure Godrej Reserve offers its residents an outstanding living experience,” said Gaurav Pandey, MD & CEO, Godrej Properties.

Last year, the company sold over 600 homes in its new project in Gurugram worth over ₹2,600 crore.

Godrej Properties had achieved 93% of its booking value guidance for the financial year 2024 by the end of the third quarter. However, the deliveries had only reached half of the guided full-year figure at the end of three quarters.

Its deliveries, at 6.5 million square feet, are only 52% of its full-year guidance of 12.5 million square feet.

Shares of Godrej Properties are trading 4.25% higher at ₹2,512 apiece on the NSE. The stock has more than doubled over the past 12 months.

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Godrej Properties acquires Hyderabad land parcel with ₹1,300 crore booking value potential

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Real estate developer Godrej Properties Ltd. on Thursday, March 14, said it has acquired 3 acre of land in Kokapet, Hyderabad. This will take the overall booking value potential for the company in Hyderabad to ₹4,800 crore, the company said in a stock exchange filing.

The land development has an estimated potential of 1.2 million square feet saleable area, which will comprise premium residential apartments of various configurations, with an estimated booking value of ₹1,300 crore, it added.

The location is near the Outer Ring Road junction, near Golden Mile Road. Kokapet is one of Hyderabad’s largest commercial and residential real estate markets and has a developed social and civic infrastructure with multiple hospitals, schools, residential, retail and commercial spaces in proximity. The location is also well-connected to the Rajiv Gandhi International Airport.

The MD and CEO of Godrej Properties Gaurav Pandey said the company is pleased to add another property in Hyderabad. “It aligns well with our expansion strategy and will further solidify our position as a leading national real estate developer,” he said.

Last month, the Mumbai-based real estate developer had acquired 12.5 acre land in Hyderabad’s Rajendra Nagar.

“The development on this land is estimated to have a potential of 4 million square feet of saleable area comprising primarily premium residential apartments of various configurations with an estimated revenue potential of ₹3,500 crore,” the company had said in a statement.

Godrej Properties shares ended 5.21% lower at ₹2,198.45 apiece the previous day, March 13. The stock has gained 98.45% in the past year.

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Godrej Properties highest bidder for Noida land with ₹3,000 crore revenue potential

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Godrej Properties Ltd., the Mumbai-based real estate developer has been declared as the highest bidder for a land parcel in Sector 44, Noida, it said in an exchange filing. It has also secured the allotment letter to develop a prime land parcel.

The bid was won through an e-auction conducted by the NOIDA authority.

Godrej Properties said that the land parcel will offer nearly 1.4 million square feet of development potential and an estimated potential of ₹3,000 crore, which is on the basis of current business assumptions. The land will see development of premium residential apartments of varied configurations.

This will be the sixth project for the company in Noida.

“We have witnessed strong demand for our existing projects in Noida and this project will further strengthen our development portfolio in NCR (National Capital Region),” said Gaurav Pandey, the company’s CEO.

The land parcel in Sector 44 is spread over 6.46 acres and has a prime location in Noida.

On Monday, the company had entered into a definitive agreement to develop a large township in Bengaluru on a profit sharing basis.

Based on current business assumptions, the project is said to offer an estimated booking value of nearly ₹5,000 crore.

Last year, the company sold over 600 homes in its new project in Gurugram worth over ₹2,600 crore. This turned out to be the most successful launch ever for the company in terms of the value of sales achieved.

Shares of Godrej Properties ended 2.1% higher on Monday at ₹2,492.40. The stock has risen 113% over the last 12 months.

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Godrej Properties to develop residential project in Bengaluru with ₹5,000 crore booking potential

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Godrej Properties, the Mumbai-based real estate developer, said it had entered into definitive agreements to develop a large township project in North Bengaluru under a profit-sharing model.

The area, spread across 62 acres is located in North Bengaluru and will offer nearly 5.6 million square feet of saleable area comprising primarily premium residential apartments of various configurations.

Based on current business assumptions, the project is said to offer an estimated booking value of nearly ₹5,000 crore.

Godrej Properties elaborated that while the agreement for the sale of land, including the above-mentioned 62 acres was entered into by the company in 2014, the development did not commence at that time. Now with the 62-acre opportunity crystalising, the first phase of this project could be launched in the financial year 2025.

“We will aim to build an outstanding residential community, that creates long-term value for its residents,” Godrej Properties CEO Gaurav Pandey said.

Last year, the company sold over 600 homes in its new project in Gurugram worth over ₹2,600 crore. This turned out to be the most successful launch ever for the company in terms of the value of sales achieved.

Godrej Properties Ltd. achieved 93% of its booking value guidance for the financial year 2024 by the end of the third quarter. However, the deliveries have only reached half of the guided full-year figure at the end of three quarters.

Its deliveries, at 6.5 million square feet, are only 52% of its full-year guidance of 12.5 million square feet.

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Godrej Properties acquires over 12 acre land in Hyderabad, says it has revenue potential of ₹3,500 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Real estate developer Godrej Properties on Wednesday, February 14, said it has acquired 12.5 acre land in Hyderabad’s Rajendra Nagar.

In a press release submitted to the stock exchanges, the company said Hyderabad is expected to be an important market for the developer in the coming years.

“The development on this land is estimated to have a potential of 4 million square feet of saleable area comprising primarily premium residential apartments of various configurations with an estimated revenue potential of ₹3,500 crore,” the statement said.

The company’s MD and CEO Gaurav Pandey said this acquisition is in line with the developer’s strategy of strengthening its portfolio across key markets in India. “We will seek to deliver a landmark project that creates long-term value for its residents,” he said.

Rajendra Nagar in Hyderabad has several schools, hospitals, retail outlets and colleges present in the locality, as per the statement. “The location offers connectivity to the Rajiv Gandhi International Airport and all major social and commercial hubs of Hyderabad city,” it added.

Godrej Properties shares ended nearly 1% higher at ₹2,280.9 apiece in the previous trade session on February 13.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Godrej Prop Q3 Results: Deliveries still at 52% of guidance; on track to meet booking projection

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Godrej Properties Ltd. has achieved 93% of its booking value guidance for the financial year 2024 by the end of the third quarter, its investor presentation highlighted. However, the deliveries have only reached half of the guided full-year figure at the end of three quarters.

At the end of the December quarter, the company has achieved booking value worth ₹13,008 crore, compared to its guidance of ₹14,000 crore for the full year.

However, its deliveries at 6.5 million square feet are only 52% of its full-year guidance of 12.5 million square feet.

Even business development by expected booking value has reached 56% of its full-year target of ₹15,000 crore at ₹8,425 crore.

Customer collections for the first nine months stood at ₹6,743 crore, which is 67% of its full-year guidance of ₹10,000 crore.

Godrej Properties reported a 76% jump in overall booking value to ₹5,720 crore for the December quarter. However, the area sold declined by 2% from last year to 4.34 million square feet.

Godrej Aristocrat, which the company launched during the quarter in Gurugram, turned out to be the must successful launch ever for the company in terms of value of sales achieved. The project, launched in December 2023 saw total sales of 1.35 million square feet for a booking value of ₹2,667 crore.

For the December quarter, the company reported a consolidated net profit of ₹62 crore, which is a growth of 5% from the same period last year. Revenue increased by 68% from last year to ₹330 crore from ₹196 crore year-on-year.

Net debt during the quarter has also gone up to ₹6,903 crore from ₹6,174 crore during the September quarter, with net debt-to-equity ratio rising to 0.72x from 0.65x earlier.

Shares of Godrej Properties are trading 0.4% higher at ₹2,331.7.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nifty Realty Index: What does the street make of its best day in two years?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Nifty Realty index saw its best single-day gain since September 2021 on Thursday after the index gained nearly 7% to end at the highest level in 15 years. All 10 index constituents ended higher, as did the non-index names like Keystone Realtors, Hemisphere Properties among others.

Stocks like Sobha surged 16% higher, marking their best single-day gain since October 2021. Shares of the Bengaluru-based builder had gained 10% on Wednesday as well.

Brokerage firm Motilal Oswal highlighted Sobha as its top real estate pick for 2024, projecting a potential upside of 25% with a price target of ₹1,400 per share. The firm said that Sobha is now set to outperform peers in terms of growth after being an underperformer. Motilal Oswal also revised its pre-sales estimates higher by 4% and 12% respectively for financial year 2024 and 2025.

Sobha released its December quarter pre-sales figures on Thursday night.

The company achieved its highest-ever quarterly sales value of ₹1,952 crore, a growth of 37% over the year-ago quarter and 13.2% from the September quarter.

Average price realisation also improved by 14.8% sequentially to ₹11,732 per square feet. The company’s core market of Bengaluru saw its highest ever quarterly sales. Cash flow during the quarter remained strong, resulting in further reduction to the company’s net debt.

Housing sales in 2023 had hit a new peak, according to an ANAROCK report, where the top seven cities registered a 31% growth compared to last year. While housing sales in Mumbai grew by 40% year-on-year, those in Bengaluru, Hyderabad and Chennai grew between 29% and 34%.

This is how the company’s stack up on the valuation front:

Even before the rally on Thursday, most stocks on the Realty index were trading at a significant premium to their Net Asset Value as of December 15.

What Do The Charts Suggest?

The realty index faced consistent resistance at its 50-Day Moving Average since the start of 2023. However, it managed to break above that key level on April 6 last year and since then, the index has doubled in value. Even as the index doubled, some of its constituents like Prestige Estates tripled, while those like DLF and Godrej Properties too gained as much as 100% since April last year.

The analyst community has also been bullish on the real estate stocks with minimal “sell” recommendations. Stocks like Sobha, are tracked by 17 analysts, all of whom have a “buy” recommendation on the stock.

Post this one-way rally, most of the stocks on the real estate index are trading well above their consensus price targets, which are now implying that the stocks have the potential to fall as much as 25% from current levels, a number that will only rise if the rally continues.

What Is The Street Suggesting?

“This upmove is going to continue for much longer because like when people make money in the markets, the first thing they do is clearly buy, like real estate,” said Independent Market Expert Ambareesh Baliga. “if you look at the balance sheet, the difference between then and now is you hardly have any stretched balance sheets. So I think there’s still a decent upside and I would say and then look at stocks like Godrej Properties, Sobha, which has gone up can still move further,” he added.

Deven Choksey of DRChoksey Finserv said that there is no major change in fundamentals of these stocks that have taken place either on Wednesday or Thursday and things remain the same on ground.

“However, the larger issue remains here that market whenever it goes down to any kind of a price correction there is an immediate amount of pool of money which is coming in ready for investing into the market because a significantly large sum of money waiting in the pipeline for investment. So, any price correction is taken as an opportunity by most of the investors,” he said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow