Buy Godrej Properties; target of Rs 2755: Motilal Oswal

Motilal Oswal is bullish on Godrej Properties recommended buy rating on the stock with a target price of Rs 2755 in its research report dated May 04, 2025.

Broker Research

May 05, 2025 / 14:59 IST

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Motilal Oswal's research report on Godrej Properties

GPL’s pre-sales volume for 4QFY25 declined 8% YoY (+85% QoQ) to 7.5msf, resulting in the highest-ever quarterly pre-sales value of INR101.6b (+7% YoY/87% QoQ, 32% above estimates). In FY25, pre-sales were up 31% YoY to INR294b (9% above estimates and 9% above guidance). Notably, 80% of the contribution came from projects in NCR, MMR, and Bengaluru. The company has guided for pre-sales of INR325b for FY26. In 4QFY25, GPL launched 12 projects across five cities, with a total cumulative saleable potential of 8.2msf, and has delivered 6.5msf. In FY25, the company launched a total of 34 projects across seven cities, with a total cumulative saleable area of 29.2msf and a GDV of INR366b (122% of guidance). The company’s launch guidance for FY26 is INR400b.

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 revised TP of INR2,755 (previously INR3,435), implying a 22% potential upside. The reduction in TP is due to dilution from the QIP issued in 3QFY25, as well as the removal of terminal value from residential projects.

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