Godrej Industries witnessed a significant surge of 7% in trading on September 3, setting a new all-time high. The stock saw over 12 lakh shares being traded on the bourses, marking a 300% increase compared to its one-month daily average of four lakh shares.
Stock Performance on NSE
As of 2:00 PM, Godrej Industries shares were quoted at Rs 1,138 per share on the NSE, reflecting a 7.2% increase from the previous session's closing price.
Valuation Insights by ICICI Securities
ICICI Securities highlighted that Godrej Industries generates substantial value from its listed subsidiaries and associates, including Godrej Consumer, Godrej Properties, and Godrej Agrovet. Based on the brokerage's target prices for these subsidiaries and a 55% holding company (holdco) discount, Godrej Industries' value is estimated to be Rs 1,260 per share.
Current Trading Position
Despite the significant uptrend, ICICI Securities noted that the stock trades at a 62% discount to the combined market value of its subsidiaries and associates. They believe the subsidiaries and associates are poised to benefit from a recovery in the end-user industries.
Technical Analysis and Investor Advisory
A R Ramachandran, an Independent Research Analyst, pointed out that while Godrej Industries is showing bullish momentum, the stock is also extremely overbought on daily charts. He advises investors to consider booking profits as a daily close below the support level of Rs 1,067 could lead to a short-term target of Rs 859.
One-Year Stock Performance
Over the past year, Godrej Industries shares have surged by over 100%, doubling the wealth of its investors. In comparison, the benchmark Nifty 50 index has gained around 30% during the same period.
IPO GMP
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