Neutral Godrej Properties; target of Rs 1300: Motilal Oswal

Motilal Oswal's research report on Godrej Properties

GPL reported its highest ever sales bookings of INR32.5b, which more than doubled YoY and were 35% ahead of estimates. For 9MFY23, pre-sales stood at INR82b, up 77% YoY, and exceeded INR78b of bookings reported in FY22. Sales volume doubled YoY and spiked 63% QoQ to 4.4msf. Blended realizations increased 5% YoY but declined 17% QoQ to ~INR7,350/sq. ft.  The record performance was driven by highest ever contribution from ongoing projects (2.6msf) as launches were moderate at 2.9msf (across four projects) and contributed 27% (INR 8.6b) to overall sales. GPL is planning to launch 6.7msf of projects in 4QFY23, and hence, expect another strong quarter of pre-sales performance. We increase our FY23E pre-sales to INR115b, on the back of higher-than-expected pre-sales in 3Q.

Outlook

We reiterate our Neutral rating with an unchanged TP of INR1,300, with a potential upside of 12%.