Godrej Properties share price hit new record high; stock jumps 8% - What’s driving the surge?

Realty major Godrej Properties shares touched a new life high of Rs 2,409.95 per share after rallying for around 8 per cent on the BSE in the intraday trade on Wednesday. The Mumbai-based realty firm shares breached its earlier high of Rs 2,328.95 per share hit on September 27, 2021.

The surge in the stock is mainly due to the positive news that the company will develop a residential project in Wadala, Mumbai. It said in a filing to exchanges, “The company has entered into an agreement to redevelop a land parcel in the upscale neighbourhood of Wadala, Mumbai.”

See Zee Business Live TV Streaming Below:

“Spread across 7.5 acres, this project will offer approximately 15 million sq. mts. (approximately 1.6 million square feet) of saleable area comprising primarily of residential apartments of various configurations," Godrej Properties said in a filing.

This marks our entry into an important micro market within Mumbai and fits within our current strategy of adding large projects across the country's leading real estate markets, said Mohit Malhotra, MD & CEO of Godrej Properties.

The counter in the last five sessions has jumped near 22 per cent. While it has gained over 61 per cent in the last one month as compared to a 5.6 per cent rise in the S&P BSE Sensex.

The scrip is also one of the key lead gainers of BSE Realty index, which is up 3 per cent to 4117.88 on the BSE intraday today. Besides Godrej Properties, Oberoi Realty, Mahindra Life, DLF are gaining.

While a global brokerage firm Jefferies believes property developers offer the best risk-reward, and says “Our conviction on the housing cycle is now rising with the pick-up in volume & pricing.”

It pointed out, developers benefit from improving industry growth and market share gains for listed players, and potential price uptick leaves a scope for NAV upgrades.