Moneycontrol PRO

Godrej Properties falls as stock gets thumbs down from global brokerages after earnings

Global research and broking firm CLSA has maintained an underperform call on the stock and has cut target to Rs 1,523.

August 03, 2022 / 01:21 PM IST
Sequentially, the numbers were weak. Profit fell 83 percent, impacted by top line as well as operating performance. Revenue from operations declined 82 percent in Q1FY23.

Sequentially, the numbers were weak. Profit fell 83 percent, impacted by top line as well as operating performance. Revenue from operations declined 82 percent in Q1FY23.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Godrej Properties share was trading lower by over three percent intraday on August 3, a day after the company declared its earnings.

The Mumbai-based real estate developer on August 2 reported a 154 percent year-on-year growth in consolidated profit at Rs 43.3 crore for the quarter ended June largely on a low base as the the second Covid wave had hit the year-ago period.

The revenue in the quarter under review surged 184 percent to Rs 244.67 crore.

Sequentially, the numbers were weak as profit fell 83 percent, impacted by top line and operating performance, and revenue from operations declined 82 percent.

Core profit grew 41 percent year on year to Rs 116 crore for the June quarter in review but declined 71 percent sequentially.

Close

At 12:52 pm, the stock was trading at Rs 1,419.40, down Rs 43.75 or 2.99 percent, on the BSE. It has touched an intraday high of Rs 1,487.00 and an intraday low of Rs 1,411.95.

Catch all the market action on our live blog

The company also announced the CEO succession plan, with Gaurav Pandey taking over as new managing director and chief executive officer from Mohit Malhotra.

"Godrej Properties announced changes to its leadership team, effective January 1, 2023. Gaurav Pandey, who is currently chief executive officer of the north zone, will take over from Mohit Malhotra as managing director and chief executive officer of the firm," the company said in its BSE filing.

Global research and broking firm CLSA has maintained an underperform call on the stock and has cut target to Rs 1,523. It is of the view that low collections and steady spend are dragging cash flows. "We maintain pre-sales guidance of over Rs 10,000 crore for FY23 and remain cautious and cut margin estimates," it said.

Morgan Stanley has an underweight rating on the stock with a target of Rs 1,487. "New launches and project acquisitions are key themes for the company. These moves will consume capital and drive up net gearing," it said.

BofA Securities has a neutral call on Godrej Properties with a target of Rs 1,650. "Affordability levels still comforting for demand. Expect impact of chief executive transition to be smooth given internal elevation," the research firm said.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Aug 3, 2022 01:21 pm
Sections
ISO 27001 - BSI Assurance Mark