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.