Godrej Properties stock slumps 4% despite Investec upgrade; brokerage sees 30% upside

Godrej Properties stock has surged 55 percent so far this year, beating Nifty's returns of 18 percent. In the past 12 months, the counter has zoomed 100 percent, more than doubling investors' capital.

Shares of Godrej Properties fell around 4 percent even after Investec upgraded its rating on the stock to 'buy' with a target price of Rs 4,200, suggesting a potential upside of 30 percent from the previous close.

The brokerage highlighted strong growth prospects and the company's strategic diversification across regions, reducing its dependence on any single market.

Investec also emphasized that Godrej Properties benefits from strong brand recognition, supporting consistent sales performance. At 1:08 pm, Godrej Properties shares were trading 4.3 percent lower at Rs 3,115.55 on the National Stock Exchange (NSE).

The stock has surged 55 percent so far this year, beating Nifty's returns of 18 percent. In the past 12 months, the counter has zoomed 100 percent, more than doubling investors' capital.

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Earlier this week, Godrej Properties approved a proposal to raise up to Rs 6,000 crore in fresh funds through a variety of instruments, as part of its broader capital-raising strategy. The approval, subject to shareholder consent, was finalised at the company’s board meeting held on October 1, 2024, the company said in a stock exchange notice.

The realty firm will raise the funds through one or more tranches, which could include the issuance of equity shares, fully and partly convertible debentures, non-convertible debentures (with or without warrants), and preference shares convertible into equity shares, among other eligible securities.

Godrej Properties may offer these through both public and private routes, including qualified institutions placement (QIP), rights issues, or further public offers, depending on market conditions, it said.

The fundraising proposal came in continuation to Godrej Properties' capital-raising efforts. Earlier, in July this year, the company raised Rs 1,275.40 crore by issuing non-convertible debentures (NCDs) on a private placement basis.

This issuance included 93,540 unsecured redeemable NCDs valued at Rs 935.40 crore, as well as 34,000 additional NCDs amounting to Rs 340 crore, which were allotted to select investors.

The company also has an aggressive project launch pipeline. According to its guidance, it is targeting Rs 30,000 crore worth of inventory for FY25, with about 30 percent of it already available in the market.

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