Morgan Stanley remains overweight as Godrej announces land deal

In the wake of strong brand equity, diversified geography and potential to unlock value from land acquisitions and reasonable valuation, Stanley remained overweight with a target price of Rs 433 post Godrej's announcement of its acquisition of 7.5 acres land worth Rs 60 crore on march 15, 2017 in north Bengaluru.

The project is likely to be launched by the second half of FY17, with Godrej expecting to make Rs 420 crore from the sales of the project, assuming Rs 5,500 per square foot as the average selling price. 

The acquired land by Godrej is expected to generate high internal rate of return of 25 per cent from the individual investment, given its prime location, further increasing the probability of bigger investments.  

Godrej Properties' stock is trading at a value of Rs 388.10, increased by 2.92 per cent on BSE, whereas, the stock is trading at Rs 388.50, increased by 3.32 per cent on NSE. While, Morgan Stanley is trading at Rs 13.20, up by 0.69 per cent.