Shares of Godrej Properties gained over 2 per cent to hit an all-time high of Rs 3,170 apiece on June 28 after it reported highest-ever pre-sales of Rs 22,500 crore in FY24.
With this, it has become the largest developer in bookings. Godrej Properties pre-sales rose by 84 per cent year-on-year (YoY) in FY24, 61 percent higher than its guidance.
Following this, analysts at Motilal Oswal shared a ‘buy’ call for Godrej Properties and upped target price to Rs 3,600 per share, indicating an upside of 13 per cent from current levels.
“Godrej Properties delivered an exceptional performance in FY24 and given the healthy demand environment, the management is confident of delivering consistent growth over the medium term,” they wrote.
The performance was mainly led by new launches, which increased by 65 percent in FY24, of which 70 per cent were absorbed during the year and contributed 70 per cent to total pre-sales. Pre-sales in NCR trebled to Rs 10,000 crore, whereas Mumbai Metropolitan Region (MMR) rose over two-fold to Rs 6,500 crore.
Going forward, the management has guided for pre-sales of Rs 27,000 crore in FY25, which implies 20 percent YoY growth. The company is gearing up to launch projects worth Rs 30,000 crore in FY25 across its core markets of NCR, MMR, Bengaluru, and Pune, as well as the recently entered Hyderabad market.
Contrary to the performance of the last two years, which was mainly driven by NCR and MMR, analysts at Motilal Oswal expect contribution from Pune, Bengaluru and other markets to significantly improve going ahead as the company is focusing on monetisation after strong business development in these markets.
“While Godrej Properties will continue to build on its growth path, the turnaround in cash flows and profitability, which has been a key investor concern, will drive further re-rating in the stock,” added Motilal Oswal.
So far this year, shares of Godrej Properties soared over 56 per cent, beating benchmark Nifty 50 index that rose by 10 per cent during the same period.
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