Tag: Godrej Properties

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

Godrej Properties buys 4-acre land parcel in Bengaluru with revenue potential of ₹1,000 crore

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

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Godrej Properties, the real estate development arm of Godrej Group, has acquired a land parcel spread over four acres in Bengaluru on an outright basis. The land acquisition is in line with the company’s strategy to further strengthen its presence in Bengaluru.

The project will have an estimated revenue potential of ₹ 1,000 crore with the scope to increase to ₹ 1,250 crore based on an additional one-acre land acquisition, the real estate company said in an exchange filing.

“This 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,” the statement read.

Godrej said the project site is strategically located with a huge frontage on National Highway – 75, Yeshwanthpur. The area offers well-developed commercial and social infrastructure and is in proximity to Goraguntepalya and Peenya metro stations, providing access to the Central Business District, (CBD) and other parts of Bengaluru.

The location also provides connectivity to the Kempegowda International Airport, Bengaluru, and other key areas of Bengaluru through Outer Ring Road – Hebbal, the statement added.

“Yeshwanthpur is an important micro market for us, and we are happy to add this land parcel to our portfolio. This will further strengthen our presence in Bengaluru and complement our strategy of deepening our presence in key micro markets across India’s leading cities,” said Gaurav Pandey, MD and CEO, of Godrej Properties.

Recently, the real estate developer said it has sold inventory worth over ₹2,600 crore in its project, Godrej Aristocrat, located in Sector 49 on Golf Course Extension Road, Gurugram.

Godrej Properties claims that the project is the most successful launch ever in terms of the value of sales achieved, surpassing the previous best launch worth over ₹2,000 crore at its project, Godrej Tropical Isle in Noida last quarter. During April-September 2023-24, Godrej Properties achieved 48% growth in its sales booking to ₹7,288 crore, compared to ₹4,929 crore in the year-ago period.

Out of the total sales booking of ₹7,288 crore, the Delhi-NCR market contributed to about ₹3,186 crore. On Monday, shares of Godrej Properties Ltd settled 0.27% lower at ₹2,007.95 apiece on the NSE. The stock has risen nearly 30% in the last six months.

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Godrej Properties sells over 600 homes worth ₹2,600 crore in new Gurugram project

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

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Real estate developer Godrej Properties on Tuesday, December 26, recorded sales of 600 homes, amounting to ₹2,600 crore, during the launch of its Gurugram project, Godrej Aristocrat.

In a stock exchange filing, the Mumbai-based real estate developer said that it sold 1.3 million square feet in the project. This marks the company’s most successful debut in terms of sales value, exceeding the previous record set by Godrej Tropical Isle in Noida in the last quarter, which amounted to over ₹2,000 crore.

The Godrej Aristocrat project is located in Sector 49 on Golf Course Extension Road in Gurugram, and it offers access to premium social infrastructure and is located near commercial establishments on Golf Course Road, Golf Course Extension Road, and Sohna Road. The area offers good connectivity to prime retail, medical, and educational infrastructure and is in proximity to the proposed metro corridor.

“Gurugram is an extremely important market for Godrej Properties. We hope to launch four new projects in Gurugram in 2024 and will endeavor to create outstanding residential communities that deliver long-term value for residents,” Gaurav Pandey, MD and CEO, of Godrej Properties, said.

In November, Godrej Properties announced that it was hopeful that the company would exceed its sales guidance of ₹14,000 crore for the ongoing fiscal.

In a post-earnings interaction with CNBC-TV18, Executive Chairman Pirojsha Godrej stated that the firm has a strong launch pipeline across Delhi NCR, Gurugram, Mumbai, and other parts of the country.

Shares of Godrej Properties were trading 1.16% higher at ₹1994.6 apiece around 9.50am on December 26.

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

Godrej Properties is hopeful of exceeding sales guidance for FY24

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

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Mumbai-based real-estate developer Godrej Properties Ltd. is hopeful that the company will exceed its sales guidance of ₹14,000 crore for financial year 2024.

In a post-earnings interaction with CNBC-TV18, Executive Chairman Pirojsha Godrej said that the company has a robust launch pipeline across Delhi NCR, Gurugram, Mumbai and other parts of the country.

““We have a pretty robust launch pipeline for the second half of the financial year, significant upcoming new launches in NCR with a few of the new Gurugram projects we added last year. We hope to launch our large project in Delhi in Ashok Vihar,” he said, adding that there are launches upcoming in cities like Pune and Bengaluru as well.

Godrej also expressed hope that there would not be too many delays in terms of regulatory approval.

“If we are able to bring all of these projects to market, we can expect to see a pretty strong year from a booking’s growth perspective. And hopefully, we can go well past our guidance number,”

For the September quarter, Godrej Properties reported a 109% growth in overall booking value, while area sold increased by 93% year-on-year.

Godrej mentioned that the company has done disproportionate business development over the last few years.

“For example, last year where we had a little over Rs 12,000 crore of booking value, our business development locked in a future booking value of about Rs 32,000 crore, which again was intentionally disproportionate to immediate scale with this idea that it will allow us to deliver a kind of more rapid growth in an improving market,” he said.

However, business development is no longer the top priority for the company as the existing portfolio can deliver the growth over the next two to three years.

Godrej Properties saw an increase in its overall debt to ₹6,174 crore from ₹5,298 crore during the same period last year. However, the company’s Executive Chairman does not see it as a cause of concern.

““Our gearing levels have gone up. We have guided, actually, ever since our IPO more than 10 years ago, the broad comfort range we have from a gearing perspective is about 1:1,” he said.

“We used to say 1:1 to 1.5:1. So, we are still very much within that range. So, we don’t see any real concern there. And operating cash flows will, we think, very significantly increased from the upcoming year onwards,” Godrej Added.

Brokerage firm CLSA said that while the company’s pre-sales were at a record, cash flow continues to lag.

“Operating cash flows will, we think, very significantly increased from the upcoming year onwards,” Godrej told CNBC-TV18.

The brokerage further said that the company’s aggressive business development, coupled with volatile operating cash flow may increase its debt further.

CLSA has a “sell” recommendation on Godrej Properties with a price target of ₹1,520.

On the flip side, Jefferies has maintained its “buy” rating on Godrej Properties with an increased price target of ₹2,100. It said that the management expects gearing to decline in financial year 2025 led by an uptick in operating cash flow and normalisation of project addition activity.

Out of the 22 analysts that track Godrej Properties, nine of them have a “buy” rating, six say “hold,” while seven of them have a “sell” recommendation.

Shares of Godrej Properties are currently trading little changed at ₹1,715.

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

Godrej Properties Q2 Results: Booking value doubles from last year, collections jump 23%

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

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Mumbai-based real estate developer Godrej Properties Ltd.’s booking value for the September quarter doubled from the same quarter last year.

The company reported its highest-ever quarterly sales of ₹5,034 crore, a growth of 109% from last year. It achieved these sales through the sale of 5.24 million square feet area.

Out of these ₹5,034 crore, the company managed to achieve booking value of ₹2,016 crore from Godrej Tropical Isle, Noida, which turned out to be its most successful launch ever in volume and value terms. It sold 1.51 million square feet area in that project.

Collections for the quarter grew by 23% from last year to ₹2,378 crore, while net operating cash flow grew 12% year-on-year to ₹811 crore.

Seven new projects and phases were launched during the quarter across five cities, the company said.

For the quarter, Godrej Properties reported a consolidated net profit of ₹67 crore, which was 22% higher than the previous quarter net profit of ₹55 crore.

The company reported an operating loss of ₹62 crore from ₹67 crore last year, while revenue increased to ₹343 crore from ₹165 crore last year.

During the quarter, the company also announced the opening of Taj The Trees at their flagship project, The Trees in Vikhroli. The company owns the entire hotels and will be managed by Indian Hotels as a luxury Taj hotel.

Spread across 0.35 million square feet, Taj The Trees has 151 rooms, restaurants, Shamiana and Nonya; a rooftop bar, The Mangrove Bar; an infinity pool across the length of the building; conference facilities; and a signature spa.

Shares of Godrej Properties are trading 2.2% higher at ₹1,701. The stock has risen 38% so far in 2023.

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Siddhartha Khemka’s top two real estate picks and the auto stock he views cautiously

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

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As the festive season lifts consumer mood across , Siddharth Khemka, the Head of Retail Research at Motilal Oswal Financial Services, discussed his sectoral views with CNBC-TV18.

He expects the Diwali and New Year sales to strengthen the real estate market. “Things look pretty good,” he commented.

Khemka is bullish on two real estate companies – Godrej Properties and Macrotech Developers.

For Macrotech Developers, Khemka has a target price of ₹900.

On October 30, Abhishek Lodha, the MD and CEO of the listed real estate developer, which operates under the brand name Lodha, charted out the future direction of the company in a discussion with CNBC-TV18.  

Khemka’s other preferred bet is Godrej Properties, for which he has a ‘buy’ rating.

Also Read | Godrej Properties issued cancellation order for Navi Mumbai plots, files suit in response

However, Khemka is cautious about TVS Motor. He believes that the company’s growth potential may be limited due to intense competition in the two-wheeler sector, with other companies trading at a significant discount.

“So while we are positive on the overall earnings and the growth trajectory, the valuation looks capped,” he explained.

Consequently, TVS Motor received a neutral rating from him.

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Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before making any investment decisions.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

Godrej Properties issued cancellation order for Navi Mumbai plots, files suit in response

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

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Realty firm Godrej Properties Ltd on Monday (October 16) said the CIDCO (City and Industrial Development Corporation of Maharashtra) has issued a cancellation order for two plots allotted to the company in Navi Mumbai.

“…we have to inform you that CIDCO by letter dated October 11, 2023 (received on October 16, 2023) has issued an order to cancel the allotment of the above two plots, situated at Sanpada, Navi Mumbai,” according to a stock exchange filing.

The cancellation order came as a surprise to Godrej Properties, given their belief that the grounds for cancellation are untenable.

This view is reinforced by the fact that the cancellation seems to contradict a previous order dated May 3, 2023, issued by the High Court of Bombay in a writ petition titled Godrej Properties Ltd. vs State of Maharashtra.

The company, while acknowledging that the cancellation does not have a material impact on its financial, operational, or other activities, has promptly taken legal action.

In response to the cancellation order, Godrej Properties has filed a writ petition before the High Court of Bombay. The company maintains a positive outlook and expects a favourable outcome, basing its confidence on a comprehensive assessment of the situation and the prevailing legal framework.

Shares of Godrej Properties Ltd ended at ₹1,701.40, up by ₹13.75, or 0.81%, on the BSE.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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