Motilal Oswal's research report on Godrej Properties
Godrej Properties (GPL) achieved its best ever second-quarter bookings of INR52b, guided by strong demand momentum (up 3% YoY). New launches/existing projects accounted for 53%/47% of total sales. GPL launched INR61b worth of projects across 5.6msf of saleable area, of which 45% of inventory was sold during the quarter and contributed 53% to pre-sales value. Sales volume was flat at 5.2msf, while realizations moved up 5% YoY at INR10,093/sft due to a better product mix. MMR reported over 4.5x jump in sales and contributed 42% to total volumes, while NCR/Bangalore contributed 23%/14% respectively.
Outlook
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 maintain our BUY rating with an TP of INR3,725, implying 26% potential upside.
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