Buy Godrej Properties; target of Rs 2843: Motilal Oswal

Motilal Oswal's research report on Godrej Properties

Godrej Properties’ (GPL) pre-sales volume for 1QFY26 declined 31%YoY/18% QoQ to 6.2msf (in line with estimates). However, pre-sales valuestood at INR71b (-18% YoY/-30% QoQ, 11% below estimates). Realizationgrew 19% YoY to INR11,478/sq. ft. The quarter’s pre-sales were driven bynew project launches—Godrej MSR City, Godrej Majesty, and Godrej Tiara—which together accounted for a booking value of INR38b (54% of totalreported bookings in 1QFY26).Notably, 89% of the contribution came from projects in NCR, MMR, andBengaluru.

Outlook

We believe GPL will continue to surprise on growth, cash flows, and margins, given its strong pipeline and healthy realizations, which have been key concerns for investors. We reiterate our BUY rating with a TP of INR2,843, implying a 39% potential upside.