Sell Godrej Properties; target of Rs 2113: ICICI Securities

ICICI Securities research report on Godrej Properties

Godrej Properties (GPL) clocked strong Q2FY25 gross sales bookings of 5.2msf worth INR 52bn, led by 5.6msf of launches for the quarter worth INR71.7bn. Sales bookings were driven mainly by INR 14.9bn of sales from Godrej Vrikshya, Gurugram, INR 6.1bn from Godrej Woodside Estate, MMR and other launches during the quarter. Buoyed by the strong H1FY25 performance where it has achieved gross sales bookings of INR 138bn, the company is well on track to meet its FY25 sales booking guidance of INR 270bn (INR 225bn achieved in FY24). We model for INR 260bn of sales bookings in FY25E and INR 300bn in FY26E owing to the company’s strong launch pipeline.

Outlook

We retain our SELL rating owing to rich valuations of 6.5x FY26E P/B with a revised target price of INR2,113 (earlier INR 1,861) based on 1.5x FY25E NAV.

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