Godrej Shares End in Red Despite Rs 600 Cr Panipat Deal
Godrej Properties closed 0.91% lower at ₹2,342 despite announcing a ₹600 crore acquisition of 43 acres in Sector 40, Panipat—implying ₹13.95 crore per acre and ₹5,882 per sq.ft. of plotted land. This parcel unlocks 1.02 million sq.ft. of residential plots with projected revenues of ₹1,250 crore, even as the Sensex dropped 0.54% and the Nifty fell 0.47% on the same trading session.
Godrej Properties’ deal valued at ₹600 crore for 43 acres works out to ₹13.95 crore per acre. Developers can divide the 1.02 million sq ft. Into plots costing ₹5,882 per sq ft. of developable land. Large land transactions of this scale typically involve an earnest deposit, staged milestone payments upon regulatory approvals (land conversion, RERA registration), and a final tranche on title transfer—aligning cash outflows with project progress.
Despite the strategic land buy, Godrej’s shares slipped 0.91%, closing at ₹2,342 down from ₹2,363.45 in the prior session. Intraday, the stock traded between ₹2,368.95 and ₹2,342, as investors reacted to a broader market sell‐off—Sensex off 0.54%, Nifty down 0.47%—and weighed the deal’s near-term execution risks.
This Panipat acquisition marks Godrej’s 11th land deal in FY 25 and its first plotted township in Haryana, extending beyond its core Mumbai, Bengaluru, and Hyderabad presence. With per-acre costs at ₹13.95 crore—less than half of Delhi-fringe rates (₹30+ crore)—the company can offer plots starting near ₹50 lakh, tapping post-pandemic demand for independent homes and diversifying its ₹30,000 crore booking base.
In FY 25, Godrej delivered 18.4 million sq ft, booked ₹29,440 crore (a 40% CAGR since FY 17), and collected ₹6,961 crore in customer advances. Q4 revenue rose 36% year-on-year to ₹2,646 crore, though net profit dipped 19% to ₹382 crore and EBITDA fell 2% to ₹634 crore, with EPS at ₹12.68 versus ₹16.95 a year earlier.
In contrast, Godrej Regal Pavilion Rajendra Nagar in Hyderabad’s Rajendra Nagar spans 6.8 acres, features 234 apartments (2 & 3 BHK) priced at ₹7,000–₹12,500 per sq.ft, and achieved a 98% sell-out in 18 months. Collections totalled ₹400 crore, showcasing Godrej’s brand recall and execution strength in mixed-use formats.
Sector 40 boasts direct frontage on NH-44, India’s longest highway, and lies just 2 km from Panipat Junction on the Delhi-Kalka corridor, with express and Shatabdi services. Upcoming infrastructure includes the 103 km Delhi-Panipat RRTS—cutting travel to under 60 minutes—and the 300 km Dabwali-Panipat Expressway (targeted Oct 2026), poised to boost accessibility and land values.
Antique Broking projects Godrej’s FY 26 bookings at ₹33,000 crore and ₹37,000 crore in FY 27, citing this Panipat deal as a growth catalyst. Plotted developments typically yield 25–35% margins and 20–25% IRRs, so this township’s ₹1,250 crore revenue potential could add 50–100 bps to overall margins, assuming strong sales velocity.
Panipat’s industrial expansion, such as the IOCL refinery upgrade and the 2G ethanol bio-refinery—c, combined with rising local demographics, underpins demand. Risks include approval delays, interest-rate hikes, and macroeconomic headwinds. Godrej’s track record—14 new launches and 18.4 msf delivered in FY 25—mitigates execution risk, though market sentiment could temper absorption.
Broader markets dipped—Sensex down 0.54%, Nifty down 0.47%—dragging the stock 0.91% lower to ₹2,342, even as the ₹600 crore deal closed.
It expands Godrej’s plotted-development footprint in Haryana at ₹13.95 crore per acre, far below metro rates, and taps strong demand for independent homes.
With ₹1,250 crore in revenue potential and 25–35% margins, the project could boost margins by 50–100 bps and support 20% booking growth guidance.
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