Stock in news: Godrej Consumer Products plans capital expenditure of Rs 900 cr

Stocks
1

Heavy losses in the metals, utilities and telecommunications sectors caused the Indian headline indices to close the session lower. Financial services and consumer durables sectors, on the other hand, recorded significant gains. The BSE Sensex lost 0.16% to 65,846 level at the close. The Nifty 50 index fell 0.13% to a level of 19,570.

Godrej Consumer Products Ltd, a manufacturer of personal care products, gained attention after announcing substantial capital investments and quarter performance. An investment of Rs 900 crore was announced by the company for the setting up of new manufacturing plants in Madhya Pradesh and Tamil Nadu.

Considering the company’s quarterly performance, on a consolidated basis it reported a growth of 10.37% from Rs 3,124.97 crore registered in Q1FY23, recording total revenue of Rs 3,448.91 crore in Q1FY24. It has reported operating profit growth of 29.84%. Compared to the same quarter last year, the net profit for the first quarter of FY24 fell 7.62%, from Rs 345.12 crore to Rs 318.82 crore.

With household insecticides and air fresheners continuing to consistently provide significant double-digit growth, the Home Care category recorded a 14% year-on-year growth. In addition, the Personal Wash segment reported high-single-digit volume growth. The company’s goal is to attain 35% renewables in its energy mix while reducing water intensity by 40% and producing zero waste for landfill. It also intends to establish efficient waste management systems in seven Indian municipalities, diverting over 5,000 MT of waste from landfills.

Godrej Consumer Products Ltd is a fast-moving consumer goods company that manufactures and markets household and personal care products. Shares have gained 16% in the previous year and are currently trading at Rs 1,011 per share, with a 52-week high of Rs 1,101 per share on the BSE.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

2

Godrej Properties sells over 600 homes; garners Rs 2,600 crore with a new launch at Gurugram

Strong market sentiment and positive financial performance following the successful launch could drive up Godrej Properties’ share price, benefiting existing investors.
In Tuesday’s trading session, the shares of Godrej Properties Limited zoomed by 0.50%. The company’s current market capitalisation is Rs 55,087.99 crore.

Recent development

Godrej Properties Limited has achieved a significant milestone by selling inventory exceeding Rs 2,600 crore in its project, Godrej Aristocrat, located in Sector 49. This remarkable success surpasses GPL’s previous best-ever launch, valued at over Rs 2,000 crore, at its Godrej Tropical Isle project in Noida last quarter.

Golf Course Extension Road, known for its established residential setting in Gurugram, offers access to premium social infrastructure and is strategically located near well-established commercial establishments on Golf Course Road, Golf Course Extension Road, and Sohna Road.

Potential Future Impacts

Increased share price: Strong market sentiment and positive financial performance following the successful launch could drive up Godrej Properties’ share price, benefiting existing investors.

Enhanced investor confidence: The positive signals from the launch can solidify investor confidence in the company’s future prospects, attracting new investors and potentially leading to increased stock liquidity.

Future project success: This achievement can set a positive precedent for Godrej Properties’ future projects, potentially enhancing their overall sales momentum and profitability.

Company profile
Established in 1897, Godrej Properties Limited (GPL) stands as the real estate development arm of the renowned Godrej Group. It represents a key player in India’s corporate landscape, embodying a legacy of success. Godrej Properties integrates the core principles of innovation, sustainability, and excellence from the Godrej Group into the real estate sector.

Geographical distribution
The National Capital Region (NCR) leads with 54.43%, followed by the Mumbai Metropolitan Region (MMR) at 15.93%. Additionally, the company has a significant presence in Bangalore (14.5%) and Pune (12.69%).

Notably, these locations contribute to the major share of GPL’s project portfolio. The rest of the world, including cities like Kochi, GIFT City, Mysore, Hyderabad, Thiruvananthapuram, Chennai, and others, currently stands at 0%, indicating GPL’s concentrated efforts in key Indian real estate markets.

Furthermore, the stock has witnessed significant buying activity as it has given returns of more than 64% in the last one year.