Shares of Godrej Properties were in focus on Friday after the company's consolidated net profit in the December quarter nearly tripled to Rs 38.95 crore while its sales bookings grew 4 percent to Rs 1,541 crore. Its net profit stood at Rs 14.35 crore in the same period of 2020-21.

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At 9:20, shares of the company were trading at Rs 1,502.35, down 166.90 points, or 10 percent lower at the BSE.

Total income increased to Rs 466.91 crore in the quarter from Rs 311.12 crore in the corresponding period of the previous year, according to a regulatory filing.

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Net profit jumped multi-fold to Rs 91.68 crore during the first nine months of 2021-22 from Rs 2.19 crore in the year-ago period.

Total income rose to Rs 1,063.12 crore during the April-December period of this fiscal year from Rs 757.01 crore a year ago. On operational performance, the company said its sales bookings grew 4 per cent to Rs 1,541 crore during December quarter.

The Real estate firm is also planning to invest Rs 400 crore to acquire around 10 percent stake in DB Realty and will also set up a Rs 600 crore equal joint platform to develop slum redevelopment projects.

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Here's what brokerages said:

According to CLSA, the deal with DB Realty lacks merit due to the direct purchase of a stake in the company. The brokerage is concerned over convoluted deal structure and risk-prone slum rehab projects of Godrej Properties. Both the deal with DB Realty and the foray into slum rehab project was unwarranted, said CLSA. The brokerage maintains a “sell” call on Godrej Properties stock and also cut its target price to Rs 1,424 from Rs 1,563.

Jefferies, on the other hand, maintains a “buy” on the realty stock but cut its target price to Rs 2,000 as opposed to Rs 2,750 earlier. The brokerage said even as the q3 sales disappointed on launch delays, Q4 looks promising. The company has done well to grow through stressed asset acquisitions, however, investment in DB Realty & stake in entity is a near-term de-rating event, Jefferies said.

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First Published:Feb 4, 2022 9:31 AM IST