Shares of Godrej Group companies advanced on Friday, led by gains in flagship Godrej Industries Ltd. and real estate major Godrej Properties Ltd.
Godrej Industries' stock hit the 20% upper circuit to an all-time high of Rs 721.25 per share after trading volumes quadrupled following a block deal on the NSE comprising 5.79 lakh shares. It closed 19.64% higher at 719.10 apiece.
Godrej Properties ended 4.73% higher on the NSE, joining peers in the real-estate sector following the Reserve Bank of India's decision to keep repo rates unchanged.
The Nifty Realty Index climbed 3.08% as optimism grew over the performance of the housing sector during the festive season amid steady interest rates.
The total market capitalisation for the five Godrej Group companies soared by Rs 6,260 crore to Rs 1.83 lakh crore on Friday. Godrej Agrovet Ltd. advanced 7.36%, and its subsidiary, Astec Lifesciences Ltd., gained 2.32%.
The sole outlier in the rally was Godrej Consumer Products Ltd., which closed 0.51% lower a day after it estimated double-digit growth in organic sales in the September quarter despite facing challenges in a tough macroeconomic environment.
The company reported mid-single-digit growth in the home-care segment and consolidated volumes. Consolidated sales grew in the low single digits.
Jefferies Financial Group Inc. said downside risks to the company include a weak macro environment in international markets, a sharp increase in input costs, and cross-currency volatility, while keeping a 'buy' rating on the stock.
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