Morgan Stanley has retained equal-weight rating on Godrej Properties with a target of Rs 475.
The research firm observed that the company was steadily ramping up its portfolio with new project acquisitions. However, its balance sheet is stretched with net gearing at 171 percent and valuations appear rich at 33x F1019EPSe and 8 percent discount to March-18E NAV.
Further, it explained that in the recent times, the company announced addition of three new projects and was planning to launch all three projects in F1QY19.
It also highlighted the company's plans to develop a group housing project at Magadi Road in West Bengaluru. This project has total saleble area of 0.6 msf where the company is targeting the higher-end-income category, Morgan Stanley said.
The company is also planning to develop a modern group housing project in sector 85, New Gurgaon, under the profit-sharing model.
At 11:32 hrs Godrej Properties was quoting at Rs 515.50, down Rs 3.65, or 0.70 percent on the BSE.
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