Thursday, January 17, 2008

HOT STOCK : GODREJ INDUSTRIES

GODREJ INDUSTRIES stands to gain immensely from the recent repeal of
Urban Land Ceiling Act of Maharashtra. It holds a large piece of land
in Vikhroli, a central suburb of Mumbai which it can now develop.
After development, the rental income alone could be over 100 crores
annually.

According to sources, the company is holding 82.88% stake of Godrej
Properties P. Ltd. which is holding 51% of Godrej Realty P. Ltd. and
100% of Godrej Waterside Properties P. Ltd. These companies are
developing an IT Park at Kolkatta and a Residential Project at Thane.

There is also a buzz in the market that Godrej Poperties will be
coming out with a public issue soon. This and the company's foray into
real estate in a big way will result in huge value unlocking for
Godrej Industries.

At the time of writing this, the stock was trading at the lows of
359.40. It can turn out to be a Multibagger investment for long term
investors.

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