Tag: Godrej Properties

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)

Listen to the Article (6 Minutes)

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.

Also Read | TVS Motor Q2 results: Net profit jumps 32% to ₹537 crore, revenue at ₹8,145 crore

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.

For more details, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

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

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

Listen to the Article (6 Minutes)

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.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

Nifty Realty Index gains 5% to the highest level in 15 years — Check out the top movers

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

Listen to the Article (6 Minutes)

The Nifty Realty Index is the top sectoral gainer on Tuesday. The index is up over 5% and has surged to the highest level since 2008. All ten constituents of the index are trading with gains.

With Tuesday’s surge, the Realty index is now up over 40% so far this year. The index had declined in 2022 after surging over 50% in 2021.

Prestige Estate Projects is the top gainer on the Realty index, trading with gains of over 14%. The stock is trading at a record high. The Bengaluru-based company’s pre-sales during the September quarter doubled compared to the year-ago period.

Other gainers on the index include Godrej Properties, Oberoi Realty and DLF, which are trading with gains between 3%-5%.

Shares of DLF are also trading had a 52-week high and has gained 49% so far in 2023. The shares rose nearly 68% in 2021 as well.

The Realty index had gained 3% on Friday as well following the Monetary Policy Committee’s decision to keep interest rates unchanged. Companies reporting strong quarterly business updates, as highlighted in Prestige Estates is also boosting sentiment in the sector.

“We saw a very similar kind of breakout from a rounding formation in the month of May 2017 wherein the ADX had just jumped about that 25 mark, the entire pattern unfolded a price target of around 50% on the higher side and we have a very similar exhibit with the breakout that was recently exhibited at around 520 levels when it comes to Nifty Realty,” said Sacchitanand Uttekar of Tradebulls. He is expecting the index to rally towards levels of 750.

“From trading perspective we have been recommending buying into DLF. The reward to risk opportunity is also good. We have a good pattern support to trail our stop losses. So, even at this juncture, keeping a stoploss around Rs 510, we may see a DLF scaling towards Rs 590-600 mark,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

Godrej Properties opens a new Taj Hotel in Mumbai’s Vikhroli

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

Listen to the Article (6 Minutes)

Godrej Properties announced the opening of Taj The Trees at their flagship project The Trees in Vikhroli, Mumbai. The hotel is entirely owned by Godrej Properties and will be managed by the Indian Hotel Companies 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. The hotel is IGBC Platinum certified and has been designed to offer views of the mangroves on one side and of the public art and sculpture park on the other.

Pirojsha Godrej, Executive Chairperson at Godrej Properties said, “We are happy to open our first hotel, Taj The Trees, in partnership with the Tata Group, as we aim to deliver quality and sustainable luxury in a green, connected, and vibrant neighbourhood.”

Currently, there are six Taj hotels in Mumbai, The Taj Mahal Palace, Taj Mahal Tower, Taj Lands End, Taj Santacruz, Taj Wellington Mews, Mumbai & Taj The Trees.

Vikhroli is an evolving micro market located in the eastern suburbs of Mumbai, strategically located along the Eastern Express Highway. Additionally, it is in proximity to the Chhatrapati Shivaji Maharaj International Airport and the proposed Navi Mumbai International Airport.

On September 29, Godrej Properties acquired approximately 109 acres of land parcel in Nagpur for a project. The company informed the exchanges last month achieved a booking value of Rs 2,000 crore through the launch of its project Godrej Tropical Isle in Noida.

The Godrej Properties stock is trading with minor cuts in pre-open trade. It has risen more than 30% in 2023 so far.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

Godrej Properties shares advance after most successful launch in volume and value terms

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

Listen to the Article (6 Minutes)

Shares of Godrej Properties have opened 1.5 percent higher on Monday, after it announced that the Godrej Tropical Isle project in Sector 146, Noida has turned out to be its most successful ever launch in terms of value and volume of sales achieved.

The Mumbai-based real estate developer informed in an exchange filing that it has sold nearly 670 homes with an area of 1.5 million square feet in the Noida Project worth nearly Rs 2,000 crore.

Godrej Tropical Isle was launched in August 2023 within nine months of the purchase of land through an e-auction conducted by the Noida authority in November 2022.

“Noida is an extremely important market for Godrej Properties and we will look to further strengthen our presence in the years ahead,” MD & CEO Gaurav Pandey was quoted as saying.

Sector 146 provides connectivity to the Indira Gandhi International Airport and the upcoming Jewar Airport as well as the three major expressways.

Godrej Properties achieved its highest ever sales both in value and volume terms in financial year 2023. The sales performance was distributed across four key geographies.

Shares of Godrej Properties are trading 1.5 percent higher at Rs 1,560.90. The stock has risen 25 percent so far in 2023.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

Godrej Properties sets aside Rs 155 crore for repairs in a Gurugram project found to have quality issues

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

Listen to the Article (6 Minutes)

Godrej Properties, a subsidiary of Godrej Industries Ltd, said it has set aside Rs 155 crore towards the repair and maintenance of their Gurugram project, Godrej Summit, in which a quality issue has been discovered.

The company also said it has appointed an external expert to undertake a detailed independent assessment of the quality issue in the Godrej Summit, which was completed in phases in 2017 and 2018.

“Godrej Projects Development Limited (GPDL), a wholly-owned subsidiary of the company, for one of its projects, Godrej Summit, recently appointed an external expert to undertake a detailed independent assessment of a quality issue discovered in the project,” it said.

The assessment has identified the presence of chloride in the concrete used in the project, which when in contact with water, leads to corrosion of steel reinforcement, Godrej Properties said.

The external experts advised that with the required repair and maintenance framework, the building is expected to perform as per its intended design life.

Accordingly, an estimated amount of Rs 155 crore towards repair, maintenance, customer claims, or any ancillary costs has been provided in the unaudited financial results of the company for the June quarter and was approved by the Board earlier today, the company informed the exchanges.

“GPDL believes that it has the ability to claim against the contractors who constructed Godrej Summit,” it said.

GPDL also said that it has made an offer to buy back apartment units or provide rentals to all buyers and will account for the buyback if and when the intending customers execute the relevant documentation with the company.

Godrej Properties Q1 numbers

The company posted an operating loss of Rs 149 crore for the June quarter, which was wider than the operating loss of Rs 24.1 crore that it reported in the same period last year.

The weak operating performance came on the back of a 20 percent year-on-year drop in the total area sold. At 2.25 million square feet, the area sold declined by nearly 60 percent compared to the previous March quarter.

Booking value for the quarter under review tumbled by 11 percent from last year to Rs 2,254 crore. Sequentially, the booking value was down by 44 percent.

For FY24, Godrej Properties has guided for Rs 14,000 crore in annual bookings, Rs 10,000 crore in collections and deliveries of 12.5 million square feet.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

Godrej Properties Q1 Results: Weak operating performance due to lower bookings, maintains FY24 targets

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

Listen to the Article (6 Minutes)

Godrej Properties reported an operating loss of Rs 149 crore for the June quarter, which was wider than the operating loss of Rs 24.1 crore that it reported in the same period last year.

The weak operating performance came on the back of a 20 percent year-on-year drop in the total area sold. At 2.25 million square feet, the area sold declined by nearly 60 percent compared to the March quarter.

Booking value for the quarter also fell by 11 percent from last year to Rs 2,254 crore. On a sequential basis, the booking value was down by 44 percent.

The company attributed the muted quarterly sales performance to some delay in planned launches. However, the management is confident of the sales momentum to improve in the September quarter and that they remain on track to meet the full-year guidance.

For financial year 2024, Godrej Properties has guided for Rs 14,000 crore in annual bookings, Rs 10,000 crore in collections and deliveries of 12.5 million square feet.

Mumbai remained the largest market for Godrej Properties, contributing to Rs 656 crore of the sales value. NCR came a close second with bookings of close to Rs 550 crore. Bengaluru, Pune and other markets contributed Rs 509 crore, Rs 446 crore and Rs 95 crore respectively.

The company’s net debt at the end of the quarter stood at Rs 5,298 crore, higher than the Rs 3,649 crore in the March quarter and Rs 956 crore in the June quarter last year.

Shares of Godrej Properties are trading 2.4 percent lower at Rs 1,611.55.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

Limited Space, Unlimited Potential: Real estate companies look for their place in Mumbai’s skyline

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

Listen to the Article (6 Minutes)

A Gurugram-based developer is trying to re-enter the Mumbai market, while a Bengaluru-based developer is looking for bookings worth Rs 5,000 crore from Mumbai in the next three years – the interest in Mumbai’s real estate market is currently as high as its skyscrapers.

Mumbai’s real estate market has been buzzing over the last few months as multiple companies are making a beeline to grab a pie of an already intensely competitive market. Over the weekened, Gurugram-based DLF announced that it will be re-entering the market of India’s financial capital through a Joint Venture with Trident Builders for a Slum Rehabilitation (SRA) project.

Not only DLF, but multiple non-Mumbai-based real estate developers are beginning to show interest in this market. Bengaluru-based Prestige Estates, which announced an entry into Mumbai in 2022, has an ambitious plan for the next three years. By financial year 2026, Prestige is aspiring for residential real estate bookings worth Rs 5,000 crore or 20 percent of the overall segment from Mumbai.

But for a market like Mumbai, that has limited land but intense competition with multiple incumbents and local developers, what is driving this interest?

Firstly, the Mumbai Metropolitan Region contributes to 37 percent of the total residential value of the top seven cities. The city also has the highest property prices in the country.

A Rapidly Transforming Skyline

A recent note by brokerage firm Jefferies indicated how Mumbai is a big opportunity for real estate players. The note mentioned that completion of four landmark infrastructure projects worth over $10 billion within the next 18 months will provide a long overdue infrastructure upgrade to India’s largest property market.

Additionally, projects worth nearly $60 billion are slated for completion within the next three to seven years, thereby boosting connectivity within the city.

A combiation of the Trans Harbor Link and the Navi Mumbai Airport opening up by the end of 2024 will significantly improve connectivity to the extended eastern suburbs. Moreover, an extensive metro rail network and other road projects will significantly reduce travel times, according to Jefferies.

The Redevelopment Push

Nearly 15,000 buildings in the city are more than 100 years old. This makes redevelopment a big opportunity. The skyrocketing land prices also makes it a better option for developers. According to a note from Ambit, nearly 1,800 redevelopment projects, 1.3 lakh new homes will hit the market in the next 3-10 years. Ambit expects the redevelopment market to be worth Rs 30,000 crore.

Unlike Bengaluru and Hyderabad, Mumbai’s market has experienced vertical growth. Vertical growth means construction of taller buildings.

Ambit further noted that between 2017-2021, the suburb of Khar has seen 31 percent of supply from redevelopment, while the upmarket township of Juhu has seen that number go up to 61 percent. The commercial hub of BKC has seen 82 percent of its supply coming from redevelopment projects.

The growth in redevelopment projects may intensify competition among tier-2 and tier-3 developers. A potential downward pressure on property prices, as a result, may be beneficial for homebuyers and investors alike. Further, the focus on vertical growth will enable Mumbai to optimise land resources more efficiently.

Redevelopment Of Dharavi

Dharavi’s redevelopment is a major news. Asia’s largest slum covers 239 hectares of land, overlooking the Bandra-Kurla Complex. The redevelopment, in the works for many years, is yet to begin and can be a major catalyst for the industry as a whole.

Industry veterans indicated that they haven’t seen this scale of development in the city in last six decades. Execution, of course, will hold the key. This will be an interesting space to watch as developers look to capture a piece of the ever-growing Mumbai skyline.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

Godrej Properties to develop housing plots in Golf Course Road, Haryana

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

Listen to the Article (6 Minutes)

Godrej Properties, one of India’s leading real estate developers. announced that it has emerged as the highest bidder and has secured the Letter of Intent to develop two group housing plots through an e-auction conducted by the Haryana Shehri Vikas Pradhikaran (HSVP).

These two land parcels are located in the Golf Course Road micro-market. Golf Course Road is an established micro-market renowned for its upscale residential and commercial developments, making it an attractive destination for real estate development. With its well-planned infrastructure and proximity to prominent landmarks, Golf Course Road offers residents a high-quality lifestyle and convenient connectivity.

Gaurav Pandey, MD & CEO, Godrej Properties, said, “Our foray into the prime Golf Course Road Micro-market with two luxury residential projects marks a significant milestone for Godrej Properties. It aligns well with our expansion strategy and will further solidify our position as a leading real estate developer in NCR. We will aim to build an outstanding residential community that creates long-term value for its residents.”

In an interview with CNBC-TV18, MD & CEO of Godrej Properties emphasized that the NCR region has been at the forefront of price appreciation in recent times and expressed optimism about the probability of prices continuing to rise in the future.

Brokerage firm Jefferies expects Godrej Properties’ profitability to improve from less than 10 percent of pre-sales to over 15 percent of pre-sales, as deployment of its recent land acquisitions gather pace.

The stock is trading 1 percent higher at Rs 1,614 on NSE at 9:30 am on July 13.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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

This analyst expects better profits from Godrej Properties after Rs 50,000 crore projects added in two years

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

Listen to the Article (6 Minutes)

Brokerage firm Jefferies expects Godrej Properties’ profitability to improve from less than 10 percent of pre-sales to over 15 percent of pre-sales, as deployment of its recent land acquisitions gather pace.

The brokerage has maintained its buy rating on Godrej Properties and raised its price target to Rs 1,850 per share from Rs 1,650 earlier. The revised price target implies a potential upside of 19 percent from Wednesday’s closing levels.

Godrej Properties has added projects worth over Rs 50,000 crore since financial year 2021, which, according to Jefferies, would help improve margins. “The deployment of its recent land acquisitions has been gathering pace and residential real estate prices have also risen,” the note said.

Since these acquisitions, some of the company’s projects are selling at a premium of 13-17 percent than the initial price, the brokerage said.

“The fast pace of project acquisitions has led to gearing rising to 0.4x by March’23. Expect co to achieve 20 percent pre-sales Compounded Annual Growth Rate (CAGR) over the medium term,” it stated.

Jefferies also called Godrej Properties’ current valuations, which are near the 10-year average price-to-book as ‘attractive.’

On Wednesday, Gaurav Pandey, the MD and CEO of Godrej Properties told CNBC-TV18 that the Delhi-NCR region has been at the forefront of price appreciation and exuded optimism that the prices would continue to rise in the future.

The company expects bookings of Rs 14,000 crore and cash collection of Rs 10,000 crore in the current financial year.

It expects deliveries of 12.5 million square feet area and business development of Rs 15,000 crore in the current fiscal.

Godrej Properties last month announced acquiring a land parcel for a luxury residential project in Kolkata with a revenue potential of Rs 1,200 crore. It also acquired around 15 acres of land in Gurgaon with a revenue potential of Rs 2500 crore.

Shares of Godrej Properties are trading 2.9 percent higher at Rs 1,603.85. The stock is up nearly 30 percent on a year-on-year basis.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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