Godrej Properties Share Price Rises After Securing Hyderabad Land Parcel

Market Performance

Shares of Godrej Properties climbed up to 2.2% on Thursday, August 21, touching ₹2,082 in early trade. Around 9:30 am, the stock was trading at ₹2,080, higher by 1.8% on the NSE.

Despite this short-term gain, the Godrej Properties share price remains down by nearly 27% since the start of 2024.

Main News

Godrej Properties has emerged as the top bidder in an e-auction held by the Telangana Housing Board (TGHB), winning a 7.8-acre residential land parcel in Hyderabad’s Kukatpally with a bid of ₹547.78 crore.

• Project Location: Kukatpally, near HITEC City
• Bid Value: ₹547.78 crore
• Revenue Potential: Approx. ₹3,800 crore

The allotment letter will be issued once TGHB completes all formalities. The project is expected to feature premium residential apartments across multiple configurations.

Company Details

Recent Business Moves

• Just a day before, the company disclosed the acquisition of a 7% stake in Godrej Skyline Developers (GSDL) for ₹9.25 lakh.
• Under this deal, Godrej Properties will purchase 92,500 equity shares of ₹10 each from existing shareholders.
• The transaction is expected to be completed on August 21.

Financial Performance (June Quarter)

• Revenue: ₹435 crore (down 41% YoY)
• Net Profit: ₹600 crore (up 15.4% YoY)
• EBITDA: Loss of ₹243 crore
• Net Debt: ₹4,637 crore (up 42%)

Expansion & Growth Strategy

• In Q1 FY25, the company added five new land parcels with a total development potential of ₹11,400 crore.
• Godrej Properties has set ambitious FY26 targets:
  • Sales of ₹32,500 crore
  • Collections of ₹21,000 crore

Summary

The Godrej Properties share price gained on August 21 after the company secured a prime land parcel in Hyderabad’s Kukatpally area with a revenue potential of ₹3,800 crore. The move strengthens its presence in Hyderabad’s residential market, following the recent Kokapet project launch.

While the stock has shown short-term gains, investors remain watchful as the company navigates high debt levels, fluctuating revenue, and expansion plans across multiple cities.