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

Stocks
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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.

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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.

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Godrej Properties Acquires 10 Land Parcels For Expansion in FY24.

Godrej Properties acquired 10 land parcels worth over Rs.21,000 crore last fiscal for new projects. The company aims to buy more land to achieve Rs.20,000 crore in sales.

Godrej Properties Limited is a real estate company with its head office in Mumbai, India, and is one of the top three developers in Delhi-NCR, Bangalore, Mumbai & Pune. A subsidiary of Godrej Industries Ltd, the company was established in 1990, The company in its investor presentation informed that it has acquired 10 land parcels in FY24 to build Rs.21000 crore worth of projects.

Investor Presentation of Godrej Properties

In its investor presentation, Godrej Properties has revealed the addition of 10 new projects, anticipating a future booking value of Rs.21,225 crore. In the previous fiscal year, Godrej Properties has given a guidance of Rs.15,000 crore for new business development, which encompasses land parcel acquisitions through outright purchase and joint development with landowners. Out of the 10 Land parcels, four land parcels are in Delhi-NCR, two each in Bengaluru and Hyderabad, and one each in Kolkata and Nagpur.

Looking ahead, the company has set an ambitious annual guidance of Rs.20,000 crore for the current fiscal year. This strategic focus highlights Godrej Properties’ commitment to expanding its portfolio in the real estate market.

Executive Chairperson on Annual Guidance

During an investor call, the Executive Chairperson of Godrej Properties, Pirojsha Godrej, emphasized the company’s proactive stance towards business development, asserting that there is no predetermined upper limit. He stressed the willingness to acquire additional land if favourable opportunities arise.

He said” If we see great opportunities, Rs.20,000 crore is not going to form any kind of upper cap certainly. We have seen in past years, for example, in FY23, where I think we guided around Rs.15,000 crore and ended up doing 35,000 crore or so. certainly, I would not look at this Rs.20,000 crore, as an upper cap, and we would hope to if we see the right opportunities, go well past.”

Conclusion

Godrej Properties’ ambitious expansion plans, as framed by its Executive Chairperson Pirojsha Godrej, highlight the company’s dynamic approach to its business development. With a history of surpassing projections, the company is aiming to continue its trajectory of growth ahead and value creation in the real estate market. This strategy has placed Godrej Properties as a key player poised to capitalize on emerging trends and drive sustained success in the industry. The share price of Godrej Properties stands at Rs.2,800 a piece today, The stock is up by more than 100% over the past year.

Disclaimer: This post 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.