Shares of Godrej Properties, the real estate development arm of business conglomerate Godrej Group, got off to a great start in Friday's trading session after the company's December quarter earnings.
The stock began today's trading session strongly at ₹1,176 apiece compared to its previous closing price of ₹1,156, and strengthened further to hit an intraday high of ₹1,209.70. The stock, however, gave up its early gains and is currently trading at ₹1,133.95, down 1.90%, reaching a four-month low.
The company on Thursday reported a 51% rise in its consolidated net profit to ₹58.74 crore for the third quarter that ended December 2022, compared to a net profit of ₹39.02 crore in the year-ago period.
The revenue from operations during the quarter fell by 13.34% to Rs. 404.6 crore, from Rs. 466.9 crore in a similar quarter last year, but sequentially, the revenue was up by nearly 10%.
Godrej Properties has posted a net profit of ₹159.25 crore during the April-December period of this fiscal, up from ₹91.90 crore in the year-ago period.
Further, in the first nine months of this fiscal year, the company's total revenue jumped to ₹1,200.18 crore from ₹1,063.12 crore a year earlier.
The sales bookings of the company jumped 111% YoY in Q3FY23, marking the highest-ever quarterly sales.
"For business development, it has been an extraordinary quarter. We have added new projects worth ₹23,000 crore in the third quarter itself, as against the annual guidance of ₹15,000 crore," Godrej Properties Executive Chairman Pirojsha Godrej told PTI.
The company is well positioned to surpass its bookings guidance of ₹10,000 crore for 2022-23 and to sharply grow on this base in the years ahead, he highlighted.
Nevertheless, he said, Godrej Properties will not revise its annual guidance for both sales bookings and new project additions for future development.
Meanwhile, for the financial year-to-date, the company has added 15 new projects with an estimated revenue potential of around ₹27,500 crore.
In the last one year, the stock underperformed by sliding 31.45%. The stock began to fall after reaching a 52-week high of ₹1,792 on April 20, 2022, and has since corrected 36%.
Following the company's earnings, ICICI Securities maintained its "Hold" rating on the stock with a revised target price of Rs. 1,120 apiece from Rs. 1,215.
The brokerage noted that the net debt of the company has increased from ₹2,120 crore to ₹2,590 crore in 9MFY23. With significant business development spending along with completions lined up in Q4 FY23 and FY24, debt levels are expected to rise further, it added.
20 analysts polled by MintGenie on average have a 'hold' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.