Godrej Properties shares up 4% after company says it sold ₹2,690 crore worth homes in key Mumbai project

Godrej Properties’ shares soared by 4% on the stock markets on Friday, after the company informed the bourses that it sold homes worth ₹2,690 crore at one its key real estate projects in Mumbai.

The company “has sold inventory worth ₹2,690 crore” in Godrej Reserve, its residential project located in Mumbai’s western suburb of Kandivali, a media release stated.

The project, said Godrej Properties, is its “most successful launch ever” in Mumbai in terms of the value and volume of sales achieved. It has a developable potential of around 3.72 million square feet with an estimated revenue potential of approximately ₹70,000 crore, it added.

After Godrej Properties disclosed the details to the exchanges at 2:30 pm, the company’s shares, which were already trading around 3% higher, rose further. The scrip settled at ₹2,512.65 apiece on the National Stock Exchange (NSE), up 4.28% as against the previous day’s close.

Why is Godrej Reserve in focus?

The project, as stated above, has an estimated revenue potential of ₹70,000 crore. It is based in Kandivali, a key suburban location of Mumbai that is connected to the arterial Western Express Highway, as well as the metro line that joins other western suburbs including Dahisar and Andheri.

The project has significant unlaunched inventory remaining, which the company plans to sell in the coming years, the release said.

“We are delighted with the response to our project, Godrej Reserve. This has now become the best-ever launch in Mumbai residential real estate,” claimed Gaurav Pandey, MD & CEO, Godrej Properties.

Notably, in the quarter ended December 2023, Godrej Properties had reported a net profit of ₹63 crore, up 11% year-on-year. The company’s sales bookings had increased by 76% YoY to ₹5,720 crore during the same period.