1. Godrej Properties up 78% since January, still a buy: CLSA

Godrej Properties up 78% since January, still a buy: CLSA

Godrej Properties Ltd shares have posted stellar returns of 78% in the year so far. CLSA says that there's still steam left in the stock.

By: | Published: August 30, 2017 1:04 PM
Real Estate Investment, buy home, festive season, Economic Outlook, ready-to-move-in homes, festive offers, cheaper loans Godrej Properties Ltd share has rallied 78% in the year so far.(Image:Reuters)

As the share prices of Godrej Properties Ltd gallops ahead, some investors may turn cautious of the stock. The stock has posted stellar returns of more than 78% in the year so far. At such skyrocketing prices, CLSA says that the stock has still has steam. Godrej Properties ranks among the top picks of CLSA. The firm has pegged the target share price of CLSA at Rs 636.

The shares were trading at Rs 563 on Wednesday morning, up by more than 4% since the previous close. The benchmark BSE Midcap index is up by 27% in the year so far. The stock has not merely outperformed the BSE Midcap in the year so far, but also in 1-year and 3-year terms.

The Real estate developer, Godrej Properties Ltd had reported a 46% decline in its June quarter consolidated net profit to Rs 23.37 crore from a year ago, plagued by higher finance costs and weak earnings. The company recorded an all-time high booking value of Rs 1,474 crore in the June quarter, compared with Rs 387 crore a year ago. “We had one of our best ever quarters in terms of operating cash flow. We look forward to building on this momentum in the year ahead,” executive chairman, Pirojsha Godrej had said.

During the quarter, the company added four new projects with 4.9 million sq. ft. of saleable area in Mumbai, Pune and National Capital Region (NCR).

Another Midcap stock Jubilant FoodWorks has rallied more than 57% in the year so far. CLSA has revised it’s target on the stock to Rs 1,900 from its earlier target of Rs 1,600. Other top picks of CLSA include Ambuja Cements, ICICI Bank, IndusInd Bank and Yes Bank with target prices of Rs 325, Rs 380, Rs 1,870 and Rs 2,070 respectively.

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