Buy Godrej Properties; target of Rs 2515: ICICI Securities

ICICI Securities's research report on Godrej Properties

Godrej Properties (GPL) has clocked strong Q4FY25 gross sales bookings of 7.5msf worth INR 101.6bn, led by several new launches across India. Buoyed by strong FY25 performance, wherein it achieved gross sales bookings of INR 294bn vs its FY25 guidance of INR 270bn, conversion of sales bookings CAGR of 55% over FY22-25 to stronger operating cash surplus (ex-land/tax/interest) over FY25-27 (INR 34.3bn achieved in 9MFY25), remains key. We maintain our sales bookings estimates of INR 305bn for FY26E and INR 312bn for FY27E owing to GPL’s strong launch pipeline.

Outlook

Upgrade to BUY from HOLD post ~27% correction in the stock price over the last three months with a revised TP of INR 2,515 (earlier INR 2,842), factoring in marginally higher FY25 sales bookings.