Godrej Properties Shares Extend Gains On Noida Project Boost; Realty Stocks Surge
Shares of Godrej Properties Ltd. jumped to a 52-week high in early trading as the developer launched the second leg of a Noida residential project.
Godrej Properties achieved sales worth Rs 575 crore in a single day for Godrej Woods at Sector 43, Noida, according to a filing before market hours on Thursday. The company sold 340 homes with an area of more than half a million square feet on the first day of the second-phase launch.
Shares of the developer jumped as much as 8.66% to Rs 2,120, a 52-week high, as of 11:30 a.m. The stock has advanced more than 20% in the two sessions since the announcement.
The Mumbai-based real estate developer has sold apartments worth about Rs 1,140 crore at the project in the last six months. Godrej Woods offers amenities including pools, a café, clubhouse, orchards, a forest trail and an elevated walkway.
Of the 20 analysts tracking the company, five maintain 'buy', six suggest 'hold' and nine recommend 'sell'.
The average of price targets compiled by Bloomberg suggest a downside of 30.5%.
The relative strength on the stock is 89, suggesting it may be overbought.
The rally in Godrej Properties pushed the S&P BSE Realty Index to its highest since 2010.
A revival in the property market, home loan interest rate cuts and a reduction in stamp duty in Karnataka have aided the realty rally, according to ICICI Securities. The momentum is likely to continue into the third quarter starting October and developers look set to post record sales booking in the second half, led by new launches, it said.