Godrej Properties - Riding On The Consolidation Wave: Motilal Oswal

Motilal Oswal Report

Godrej Properties Ltd. FY23 annual report highlights its key strategic objectives:

1. target to achieve Rs 140 billion in pre-sales, fueled by a robust launch pipeline;

2. capitalise on its strong balance sheet to boost market share through business development; and

3. maintain its commitment to implementing and advancing sustainability initiatives.

Valuation and view:

We retain our pre-sales projections for FY24/FY25, on the back of strong launch pipeline. Furthermore, Godrej Properties has indicated about the possibility of launching projects that are currently not included in the existing pipeline.

The acceleration in bookings has been supported by record business development efforts and improved profitability. This positive trend can be attributed to the increased scale of delivery and a higher proportion of completions from projects added post-FY18.

During the quarter, Godrej Properties successfully added Rs 64.5 billion worth of projects and is on track to add Rs 150 billion of projects in FY24.

This will continue to provide strong visibility on pre-sales growth. Thus, we reiterate our 'Buy' rating on the stock with a target price of Rs 1,915.

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