Godrej Properties shares continue to surge, jump 10% today amid heavy volumes; here's why

Shares of Godrej Properties Ltd rose sharply in Monday's trade, extending their gains for the sixth straight session in line with the domestic benchmarks. Today's sharp movement in the share price came after the company registered "highest ever quarterly and annual sales bookings" in the March quarter (Q4) and the financial year 2022-23 (FY23). In terms of cash collections and project deliveries, the company said it also recorded its best-ever quarter.

The stock jumped 9.82 per cent to hit a day high of Rs 1,235.70 over its previous close of Rs 1,125.25. Around 1.28 lakh shares changed hands today, which was more than five times compared to the two-week average volume of 24,000 shares. Turnover on the counter stood at Rs 15.47 crore, commanding a market capitalisation (m-cap) of Rs 33,918.62 crore.

"Sales volumes for the quarter grew by 19 per cent QoQ in area terms from 4.42 million sq. ft. to 5.25 million sq. ft. Sales volumes for the full financial year grew by 40 per cent in area terms from 10.84 million sq. ft. to 15.21 million sq. ft. Q4 FY23 cash collections stood at Rs 3,822 crore representing QoQ growth of 127 per cent and YoY growth of 52 per cent. Delivered projects aggregating over 10 million sq. ft. across 5 cities in FY23 including 7.6 million sq. ft. in Q4," the company stated.

The company said it has added 18 new projects in FY23 with a booking value of Rs 32,000 crore. This included 5 new projects with an expected booking value of Rs 5,750 crore in Q4, it added.

Gaurav Pandey, MD & CEO, Godrej Properties, said, "Our robust sales performance has translated into record collections growth of 41 per cent to Rs 8,991 crore backed by strong project completions of over 10 million sq. ft. With our business development additions nearly doubling our initial guidance and increasing by over 200 per cent YoY, we will have a stronger launch pipeline in the current year than ever before."

On the technical front, support on the counter could be seen at Rs 1,174.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "The stock has seen a decisive spurt in trading volumes and prices in the last two trading sessions, which led it to gain over 15 per cent. On the technical front, the stock has seen a reversal with a bullish gap at Rs 1,160-1,130 on the daily charts, which is likely to cushion any short-term blip. Post the steep rally, the stock might take some breather; however, the undertone turns bullish. On the higher side, the 200-SMA at Rs 1,250 is expected to challenge the momentum in a comparable period, surpassing which Rs 1,300-1,340 zone could be tested in the counter."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Though the counter looks lucrative at the current juncture, one must revisit its past few session performances. Almost 21 per cent return it gave after hitting a 52-week low of Rs 1,005.70 on March 29, 2023. One can book profit near its resistance levels of Rs 1,225-1,235 levels and wait for some correction till Rs 1,160-1,180 for fresh longs. As of now, no fresh longs are advised."

AR Ramachandran from Tips2trades said, "Godrej Properties now has strong support at Rs 1,174. A daily close above its resistance of Rs 1,218 could lead to targets of Rs 1,260-1,310 in the near term."

Meanwhile, Indian equity benchmarks traded higher in late deals today, led by gains in automobile, technology, metal and energy stocks.

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