Its total income for the April-June 2019 quarter stood at Rs 713.84 crore as against Rs 1,066.73 crore, registering a decline of 33.08 percent.
The issue had opened on June 25 and closed on June 28, 2019.
Morgan Stanley said the downgrade reflected its relative preference within its coverage universe.
The company had posted a net profit of Rs 42.28 crore in the year-ago period, the Mumbai-based developer said in a regulatory filing.
In the BSE Smallcap index, 60 percent of total 750 stocks were in the positive return on closing of April 16 and of which top 45 stocks rallied between 50-195 percent.
The aforementioned companies include marquee names such as RMZ Group, K Raheja Corp, Brookfield, Panchshil Realty and Godrej Properties.
Godrej Properties, Housing Development Finance Corporation (HDFC), Kajaria Ceramics, Seamec and SRF hit 52-week high on NSE.
The top Nifty gainers include Indiabulls Housing Finance, Tata Motors, IndusInd Bank, HDFC and Bharti Airtel while BPCL, Eicher Motors, Infosys, Tech Mahindra and Britannia Industries are the top losers.
The top Nifty gainers include Tata Motors, Eicher Motors, Bharti Airtel, Power Grid and IndusInd Bank while Bajaj Auto, Britannia Industries, Grasim Industries, HCL Tech and BPCL are the top losers.
In a statement, the Mumbai-based developer said "it has achieved its highest ever bookings numbers in Q4 FY19."
The January-March quarter of 2018-19 was Godrej Properties' best ever quarter for bookings, eclipsing October-December quarter, which was its previous best ever residential sales quarter, by about 50 per cent, it said.
The total land that will be developed comprises over 300 acres located across the prime markets of west and east Pune.
This portfolio would comprise of various asset classes including group housing projects, plotted development, mixed use development and township projects.
The breadth of the market favoured the advances with 1010 stocks advancing and 667 declining while 379 remained unchanged. On the BSE, 1286 stocks advanced, 1015 declined and 149 remained unchanged.
The research firm believes that the market risk is on the downside in near term, and there could be a lag in capex and housing recovery as well.
Deutsche said the impact of joint venture with Hero Cycles on near-term financials would be limited.
The joint venture will develop, lease, and manage around 1 million square feet of prime office and retail space on the 4-acre property.
During 2017-18 fiscal, Godrej Properties' sales bookings stood at record Rs 5,083 crore.