Hold Godrej Properties: target of Rs 2482: ICICI Securities

ICICI Securities's research report on Godrej Properties

Godrej Properties (GPL) clocked strong Q3FY25 gross sales bookings of 4.1msf worth INR 54.5bn, led by over 2msf of launches across India. Buoyed by a strong 9MFY25 performance, wherein it achieved gross sales bookings of INR 193bn. GPL is on track to meet its FY25 sales booking guidance of INR 270bn (INR 225bn achieved in FY24) led by multiple launches lined up in Q4, having an estimated GDV of INR 60bn. We model INR 278bn of sales bookings in FY25E and INR 305bn in FY26E owing to GPL’s strong launch pipeline.

Outlook

Upgrade to HOLD from Sell post ~20% correction in the stock price over the last six months with a revised TP of INR 2,482 (earlier INR 2,113), factoring in the recent QIP infusion of INR 60bn and new project additions. Upside risk: Better-than-expected cashflow generation. Downside risk: Slowdown in residential demand.