Godrej Properties jumps 5% on upbeat sales in Bengaluru; stock at new high

The company announced that it has sold over 2,000 homes worth over Rs 3,150 crore in its project, Godrej Woodscapes, located in Whitefield-Budigere Cross, Bengaluru.

Shares of Godrej Properties (GPL) hit a new high of Rs 3,333, surging 5 per cent on the BSE in Tuesday’s intra-day trade after the company said it sold over 2,000 homes worth over Rs 3,150 crore in its project, Godrej Woodscapes, located in Whitefield-Budigere Cross, Bengaluru.

In the past one month, the stock has rallied 29 per cent, while, in the past one year, it has zoomed 113 per cent. In comparison, the BSE Sensex was up 0.06 per cent at 79,520 at 11:56 am.

GPL in an exchange filing said this is company’s most successful launch ever in terms of the value and volume of sales achieved and is the second launch with Rs 3,000 crore sales in the past three months. With the success of Godrej Woodscapes, GPL has achieved over 500 per cent quarter-on-quarter (QoQ) growth in sales in Bengaluru and surpassed its full year FY24 sales in South India within the first quarter.

GPL, one of India’s leading real estate developers, has a robust launch pipeline for FY25, which includes several new project launches planned in Bengaluru. These planned launches along with the strategic market entry into Hyderabad will significantly strengthen the company’s presence in South India, the company said.

In a separate filing GPL on Monday announced the acquisition of ~7 acres of land in Thanisandra, North Bengaluru on an outright basis. The proposed project is estimated to have a developable potential of ~ 9 lakh square feet with an estimated revenue potential of around Rs 1,200 crore.

GPL also announced that it will develop ~11-acre land parcel in Hinjewadi, Pune. The development on this land will comprise primarily group housing & high street retail. The project will have a developable potential of ~ 2.2 million square feet with an estimated revenue potential of around Rs 1,800 crore. The company said estimated revenue is on the basis of the current business assumptions.

GPL had witnessed strong sales of 20 million square feet valued at Rs 22,527 crore in fiscal 2024, on the back of strong demand for its projects and series of launches rolled out during the fiscal. The momentum is expected to continue with further new launches over the medium term, supported by buoyancy in end-user demand.

Strong brand and execution track record continues to help GPL to achieve healthy pre-sales at the project launch itself. GPL is expected to sustain its strong business risk profile over the medium term, backed by robust saleability in ongoing projects and increasing share of owned projects and JV/joint development agreement (JDA) models with higher revenue/profit share, thereby enhancing overall profitability, according to CRISIL Ratings.

GPL derives significant synergies from its association with the Godrej brand, as is reflected in the robust saleability of its projects, all of which share the group’s brand name. The company has signed a memorandum of understanding (MoU) with various group entities to develop land parcels under the developer management agreement (DMA) model, which provides additional long-term business visibility. Furthermore, GPL has the financial flexibility to refinance debt at low cost being a part of the Godrej group, which has been demonstrated in the past. CRISIL Ratings believes strong management and association with the Godrej group will remain key rating drivers, the rating agency said in its rationale note.