Godrej Properties delivered exceptional performance with 84 per cent YoY growth in bookings, aided by strong positive reception of new launches in both the NCR and Mumbai, Motilal Oswal said.
Godrej Properties share price target: Antique Stock Broking upgraded the stock to ‘Buy’ with a revised target price of Rs 3,351,” the brokerage said. Choice Broking finds the stock worth Rs 2,957.
Shares of Godrej Properties Ltd climbed 10 per cent in Monday’s trade following the company’s March quarter results, where sales booking impressed analysts while the realtor’s debt levels are saw some easy. Post its results, analysts did raise their price targets of Godrej Properties and suggested a ‘Buy’ on the stock.
On Monday, the stock jumped 10 per cent to hit a high of Rs 2,825.90 on BSE.
Motilal Oswal said Godrej Properties delivered exceptional performance with 84 per cent YoY growth in bookings, aided by strong positive reception of new launches in both the NCR and Mumbai. Given the healthy demand environment, management is confident of delivering consistent growth over the medium term, it said.
“We believe GPL will continue to surprise on growth, cash flows, and margins, given its strong pipeline and healthy realizations, which have been the key investor concerns. We reiterate our Buy rating with an increased price target of Rs 3,000, implying 17 per cent potential upside,” Motilal Oswal said.
Over the last three years, Godrej Properties’ outright purchases have accounted for 72 per cent of total business development. Due to its presence in all four markets, GPL is benefiting the most from the current upcycle, said Antique Stock Broking.
“In the light of the GPL’s robust performance in FY24 and strong guidance for FY25, we adjusted the sales booking estimates upwards by 30 per cent/25 per cent over FY25-FY26E to Rs 27,000 crore/ Rs 29,700 crore. We upgrade the stock to BUY with a revised target price of Rs 3,351,” the brokerage said.
Choice Broking finds the stock worth Rs 2,957. Nuvama said Godrej Properties’ sales momentum may stay with the housing cycle turning. Cash flow generation remains a key stock trigger, it said while suggesting a ‘Hold’ on the stock with a revised target price of Rs 2,828 Rs 2,338 earlier) based on Q4FY26E NAV.
Operating cash surplus for Q4FY24 was strong at Rs 2,600 crore compared to land capex of Rs 1,200 crore, leading to net debt levels declining Rs 700 crore QoQ to Rs 6,200 crore, as of March 2024.
ICICI Securities says ‘Sell’ Godrej Properties shares
Q4 gross sales bookings of 8.2msf worth Rs 9,520 crore, were led by Rs 3,010 crore of sales from Godrej Zenith, Gurugram and Rs 2,700 crore from Godrej Reserve, Kandivali, MMR. Godrej Properties, ICICI Securities said, exceeded its initial FY24 sales booking guidance of Rs 14,000 crore, clocking Rs 22,500 crore of sales bookings in FY24.
“The company’s FY25 sales booking guidance stands at Rs 27,000 crore, implying 20 per cent YoY growth on the back of a strong FY25 launch pipeline of Rs 30,000 crore. We now model Rs 26,000 crore of sales bookings in FY25E and Rs 30,000 crore in FY26E. We retain our SELL rating with a revised target price of Rs 1,861 (earlier Rs 1,533) based on 1.4x FY24 NAV owing to the faster pace of new launches,” it said.
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