Buy Godrej Properties; target of Rs 1915: Motilal Oswal

Motilal Oswal's research report on Godrej Properties

GPL reported pre-sales of INR22.5b, which was down 11%/44% YoY/QoQ and was 16% lower than our estimate. Sales volume declined 20%/57% YoY/QoQ to 2.25msf, while blended realizations improved 12% YoY, aided by higher contribution from MMR (30%) and NCR (24%) markets. Muted performance was driven by lower launches and limited sustenance inventory of ~12msf or INR90-100b, which contributed ~80% of sales by value. The company launched three projects with saleable area of 1.1msf and contributed INR4.4b to pre-sales. GPL is on track to launch 19msf of projects in the remainder of FY24 with further upside potential from the launch of recently added Gurugram projects. Management re-iterated its guidance to achieve INR140b of presales in FY24. We expect the company to clock bookings of INR150b.

Outlook

As a result, our TP increases to INR1,915, implying 15% upside. We reiterate our BUY rating on the stock.