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Godrej Industries Share Price Spikes On Over Twofold Rise In Q2 Profit

Godrej Industries share price rose as much as 9.50% to Rs 1,021.45 apiece.

<div class="paragraphs"><p>The holding company of Godrej Group recorded a consolidated net profit of Rs 488.86 crore for the quarter ended September. (Photo source: Godrej Industries website)</p></div>
The holding company of Godrej Group recorded a consolidated net profit of Rs 488.86 crore for the quarter ended September. (Photo source: Godrej Industries website)

Shares of Godrej Industries Ltd. surged nearly 10% in early trading on Thursday following the company's strong financial results for the quarter ending September.

The holding company of the Godrej Group reported a consolidated net profit of Rs 488.86 crore for the period, a significant jump from Rs 164.5 crore in the same quarter last year, marking over a twofold increase.

This result represents the second consecutive quarter of more than double growth in the company's bottom line.

Revenue for Godrej Industries also saw a 22% year-on-year increase, reaching Rs 4,804.96 crore for the quarter. Operating income, or Ebitda, surged by 116% to Rs 574.72 crore, with the Ebitda margin expanding to 12% from 6.7% in the previous year.

In terms of business segments, the consumer products division posted sales of Rs 3,647 crore during the quarter, driven by a 12% growth in the home care segment and a 3% rise in personal care sales.

The chemical business saw its revenue increase to Rs 819 crore, while the real estate arm recorded income of Rs 1,343 crore.

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Godrej Industries Share Price Spikes On Over Twofold Rise In Q2 Profit

Godrej Industries Share Price

Godrej Industries share price rose as much as 9.50% to Rs 1,021.45 apiece. The stock pared gains to trade 3.66% higher at Rs 967 apiece, as of 09:33 a.m. This compares to a 0.12% advance in the NSE Nifty 50 Index.

It has risen 30.37% on a year-to-date basis. Total traded volume so far in the day stood at 1.94 times its 30-day average. The relative strength index was at 37.87.

ICICI Securities (Institutional) maintains a 'buy' call on the stock, with a target price of Rs 1,090, according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.3%

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