Buy Godrej Properties; target Rs 430: Firstcall Research
Brokerage house Firstcall Research is bullish on Godrej Properties and has recommended buy rating on the stock with a target price of Rs 430 in its September 20, 2013 research report.
October 08, 2013 / 11:23 IST
Firstcall Research report on Godrej Properties
"Godrej Properties has reported revenue of Rs. 1091.37mn, against Rs. 821.36 mn in the corresponding quarter of previous year, registered a growth of 32.87% y-o-y. In Q1 FY14, the Company’s total booking value of Rs. 6060 mn and total booking volume of 0.59 million sq. ft.. The Company was launched a flagship commercial project at BKC, Mumbai in March 2013, and it was sold 0.137 million sq. ft. with a booking value of Rs. 3310 mn in Q1 FY14. During the quarter, the Company has added two projects with 1.85 million sq.ft. of saleable area in New Delhi and Bengaluru. Godrej Properties has entered into a Development Agreement with Oasis Buildhome Pvt. Ltd. to develop a 13.76 acre property in Gurgaon. The Company has expanded its portfolio in Bengaluru with addition of a new project with 1 million sq. ft. of saleable area under the development management fee model. Godrej Properties has entered into an agreement to develop 37 acres in Panvel, Maharashtra. This new area is in addition to and is contiguous with the 110 acres project the company had added to its portfolio in FY13; GPL will receive 35% of the profits from the development.""The company focusing for new business development will be in the high growth markets of Mumbai, NCR, Bengaluru, Chennai and Pune for FY2014. Strategically, it has reduced their focus on commercial projects in Tier- II cities and increased its overall emphasis on residential developments which require lower investments and can be developed in a more capital efficient manner. The Company continues to expand its development portfolio and signed two new deals in their target markets of Bangalore and NCR this quarter. Godrej Properties has delivered strong YoY earnings and bookings growth despite adverse market conditions. We expect the company to post a CAGR of 13% and 13% in its top-line and bottom-line respectively. Hence, we recommend ‘BUY’ for ‘Godrej Properties Ltd’ with a target price of Rs 430 on the stock," says Firstcall Research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
