Godrej Properties Gets Target Price Hike From CLSA—Details Inside
CLSA has maintained its ‘outperform’ rating on Godrej Properties Ltd., raising its price target to Rs 2,850 from Rs 2,770, citing closing on a strong quarter and strong growth with improving cash flows and margin.
Strong Quarter and Improving Cash Flows
The brokerage believes that the low profitability overhang is getting addressed with improving cash flows and thus margin outlook. This is a significant development for Godrej Properties, as it indicates that the company is on the path to sustainable growth.
Comparison with Peers
CLSA noted that Godrej Properties’ stock trades at a EV/ cash Ebitda of 8.4 times, compared to 12-18 times for Oberoi and Lodha, which the brokerage believes is unwarranted. This suggests that Godrej Properties is undervalued compared to its peers, making it an attractive investment opportunity.
Presales Guidance and New Launches
The brokerage believes that Godrej Properties is likely to surpass its presales guidance of Rs 325 billion for FY26. With improving cash flow trajectory, the low profitability overhang is getting addressed. Godrej Properties is likely to clock strong presales of Rs 80-85 billion in Q2FY26, up approximately 15% quarter-on-quarter and 55% year-on-year.
New Launches and Project Pipeline
Godrej Properties has launched eight new projects with a gross development value (GDV) of Rs 115 billion. Based on CLSA’s channel checks with property brokers, the brokerage expects strong contribution to come from key new launches such as Godrej Regal Pavillion (Hyderabad), Godrej Sora (Sector 53, Gurgaon), and Godrej MSR City II (Bangalore). The company’s plotted projects in Joka and Indore have also garnered a strong response.
Outlook and Investment Opportunities
With a strong pipeline of new launches with a GDV of Rs 350 billion planned in H2, Godrej Properties is likely to clock higher presales in the second half of the year. This presents an attractive investment opportunity for Indian investors looking to capitalize on the growth of the real estate sector. Investing in Indian real estate can be a lucrative option, but it’s essential to do your research and stay up-to-date with the latest market trends.
Conclusion
In conclusion, the target price hike by CLSA is a positive development for Godrej Properties and the Indian real estate sector as a whole. With strong growth, improving cash flows, and a robust project pipeline, Godrej Properties is well-positioned to deliver sustainable growth and attractive returns for investors. As the Indian economy continues to grow, the demand for quality real estate is likely to increase, making companies like Godrej Properties an attractive investment opportunity.
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