Motilal Oswal's research report on Godrej Properties
Godrej Properties (GPL) reported its highest ever sales bookings for the second consecutive quarter with pre-sales of INR40b (up 25% YoY/QoQ and 12% above our estimate) in 4QFY23. For FY23, bookings stood at INR122b (up 56% YoY) and surpassed its full-year guidance of INR100b. Sales volume was up 24% YoY/19% QoQ to 5.3msf and was the highest ever at 15msf for FY23. Blended realizations were flat YoY at ~INR7,700/sqft but improved 8% QoQ due to mix improvement. GPL launched 7.6msf of projects in 4QFY23 (~15msf in FY23) that contributed ~60% of sales during the quarter. The company has stated that it will launch a 20msf project pipeline in FY24 and expects to deliver INR140b of sales bookings in FY24 (up 15% YoY).
Outlook
The company continues to provide strong visibility on pre-sales growth with sustained aggression in business development activity as it is targeting to add INR150b worth of new projects in FY24. Additionally, the expected improvement in delivery and profitability can further re-rate the stock. We reiterate our BUY rating with an unchanged SoTP-based TP of INR1,575, implying 19% upside.
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