Godrej Industries surges 38% in five sessions on robust Q3 results

The stock, which jumped 13.2% to ₹1,133 on Friday, is up 38% in the past five trading sessions as against the benchmark Nifty 500‘s gains of 0.8% this week.

“The market usually rewards companies which can grow profits by earning more revenues rather than just reducing costs, and Godrej stood out for its results despite an overall economic slowdown that was seen in the recent results,” said Aamar Deo Singh, senior vice-president of research at Angel One. The stock fell around 35% from around ₹1,235 on September 30 to ₹800 in February 14.

The company had reported a 90% yearly growth in consolidated profits to ₹312.4 crore as of December 31. Revenue from operations was up 34% at ₹4,824.83 crore in December, compared to the previous year.

“After the announcement of the quarterly results, we saw buying interest which led the stock higher,” said Rupak De, senior technical analyst at LKP Securities.

He said that post the announcement of December quarter results, the stock formed bullish patterns on the chart, which led to a reversal and up-move in the price. Godrej Inds shares are up 17% in last 6 months, vs Nifty 500’s drop of 11.5%. “After a steep rise, the rally appears somewhat overextended, and profit-booking may occur in the near term, potentially pulling back the stock towards the ₹1,000-₹1,030 range in the short term, which can be a buying opportunity with stop loss of 960,” said De.Singh said existing investors can look to book profits around the ₹1,200 levels.