Godrej Industries Stock Rises 10% Amid Market Weakness Following Major Investment Announcement
Godrej Industries zooms 10% in weak mkt; here's why the stock is in demand
Business Standard
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Godrej Industries shares rose by 10.3% to hit an intra-day high of ₹1,042.65 amid a declining market. The surge follows the announcement of a ₹5,000-7,000 crore investment in unlisted businesses over the next five years, aiming for a market capitalization of ₹5 trillion by 2031.
- 01Godrej Industries shares surged 10.3% in a weak market.
- 02The company plans to invest ₹5,000-7,000 crore in unlisted businesses over five years.
- 03Godrej aims for a market capitalization of ₹5 trillion by 2031.
- 04The group reported sales of $6.1 billion for FY25.
- 05Sustainability targets include net-zero operations by 2035.
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Godrej Industries shares experienced a notable increase of 10.3%, reaching an intra-day high of ₹1,042.65 on the Bombay Stock Exchange (BSE) despite a declining market. As of 10:17 AM, the stock was trading at ₹999.35, up 5.78%, while the BSE Sensex fell by 0.58% to 78,061.11. This surge was driven by Godrej Industries Group's (GIG) announcement to invest between ₹5,000-7,000 crore in its unlisted businesses over the next five years, aiming for a market capitalization of ₹5 trillion by 2031. The investment will focus on three unlisted entities, with the listed businesses expected to self-fund their growth. Pirojsha Godrej, the chairperson designate, emphasized that the listed businesses will not require funding from the group level. GIG also aims for a 15% annual sales growth and 20% growth in earnings per share (EPS), with each business expected to achieve a return on equity (ROE) of over 18%. The group has set ambitious sustainability goals, including net-zero operations by 2035 and a planet-positive supply chain by 2047.
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The investment plan could lead to job creation and economic growth in the sectors involved, benefiting local communities and stakeholders.
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