Stock Of The Day: Godrej Properties Hits Lifetime High On Blockbuster FY24—Key Levels, Analyst View

Shares of Godrej Properties on Tuesday jumped nearly 8% after the company reported a 84% increase in sales bookings to a record Rs 22,500 crore in the last financial year.

The Mumbai-based real estate major has surpassed the sales booking numbers of Bengaluru-based Prestige Group, which on Monday reported pre-sales of Rs 21,040 crore during the last fiscal year.

Macrotech Developers has reported sales of Rs 14,520 crore in the previous fiscal. DLF is yet to announce its numbers.

During the fourth quarter of the last fiscal, Godrej Properties' sales bookings more than doubled to over Rs 9,500 crore year-on-year, on higher volumes amid strong consumer demand for residential properties.

"This is the highest-ever annual sales announced to date by any publicly listed real estate developer in India. This was achieved through the sale of 14,310 homes with a total area of 20 million square feet," the company said in its press release.

Shares of Godrej Properties jumped nearly 8% to Rs 2,791 apiece. This compares to a rise of 2.1% in the Nifty Realty index. The stock has risen 34.3% year-to-date and 105.6% the last 12-months.

Key Levels To Watch

• Support Levels: Rs 2,097.1 apiece (Three-week low).

• Resistance Levels: Rs 2,791.8 apiece (Today's high)

Business Outlook

Key Project Launches Supporting Pre-Sales Growth

• Godrej Zenith in the National Capital Region achieved a booking value of more than Rs 3,000 crore.

• Godrej Reserve in the Mumbai Metropolitan Region achieved a booking value of Rs 2,690 crore.

• Four projects (including Godrej Aristocrat launched in Q3 and Godrej Tropical Isle launched in Q2) achieved over Rs 2,000-crore booking value in FY24.

Key Regions Supporting Growth in FY24

• Bookings in the NCR in FY24 grew 180% to over Rs 10,000 crore.

• Bookings in the MMR grew 114% to over Rs 6,500 crore.

The company recently forayed into the Hyderabad property market by purchasing a 12.5-acre land for Rs 350 crore to develop a housing project having Rs 3,500 crore revenue potential.

Gaurav Pandey, MD and CEO, Godrej Properties said "We are pleased that this sales growth was on the back of both an improving project mix as well as strong volume growth of 31%"

He said the company has a strong launch pipeline for the current fiscal, which will also be bolstered by the recent entry into the important Hyderabad market.

Analyst View

With 19.8msf/Rs 22,500 crore, pre-sales in FY24 were 19%/26% higher compared to estimates, said Karan Khanna, research analyst at Ambit Capital.

The brokerage expects momentum to continue further and build in pre-sales of Rs 23,300 crore/Rs 27,400 crore in FY25/FY26.

However, it maintains a 'sell' rating due to unfavorable valuation. Its set a target price of Rs 1,820 per share, implying 6 times one-year forward P/B and a downside of 29.6% to Monday's closing price.

Analyst Recommendations