Godrej Properties share price hits life-time high on highest ever pre-sales in FY24. Should you buy the stock?

Realty large Godrej Properties reported 84% year-on-year (YoY) maturation successful its FY24 pre-sales to grounds ₹22,500 crore, becoming the largest developer successful presumption of bookings. 

The show was chiefly led by caller launches, which accrued by 65% successful FY24, of which 70% were absorbed during the twelvemonth and contributed 70% to full pre-sales. 

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The company’s income measurement accrued by 31% YoY to 20 msf portion realization roseate 40% YoY, driven by a higher publication from high-realization markets of NCR and MMR and enhanced positioning successful the premium segment, brokerage steadfast Motilal Oswal Financial Services noted.

Pre-sales successful NCR trebled to ₹10,000 crore and successful Mumbai Metropolitan Region (MMR) roseate implicit two-fold to ₹6,500 crore.

Godrej Properties’ absorption has guided for pre-sales of ₹27,000 crore successful FY25, which implies YoY maturation of 20%. With ongoing task inventory of conscionable 7 months, launches volition again beryllium a cardinal operator of maturation successful FY25, Motilal Oswal said.

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The institution is gearing up to motorboat projects worthy ₹30,000 crore successful FY25 crossed its halfway markets of NCR, MMR, Bengaluru and Pune, arsenic good arsenic the precocious entered Hyderabad market. 

Motilal Oswal expects the publication from Pune, Bengaluru and different markets to importantly amended going up arsenic the institution is focusing connected monetization aft beardown concern improvement successful these markets.

“The summation successful currency flows and ₹3,000 crore of surplus currency volition enactment higher spending without affecting the equilibrium sheet. While Godrej Properties volition proceed to physique connected its maturation path, the turnaround successful currency flows and profitability, which has been a cardinal capitalist concern, volition thrust further re-rating successful the stock," Motilal Oswal said.

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The brokerage location reiterated its ‘Buy’ standing connected Godrej Properties shares and accrued the people terms to ₹3,600 per share, implying a imaginable upside of 16% from Thursday’s closing price.

Godrej Properties stock terms has fixed decent returns arsenic the banal is up much than 15% successful 1 period and implicit 59% year-to-date (YTD). Godrej Properties shares person rallied much than 102% successful the past 1 year.

At 2:45 pm, Godrej Properties shares were trading 3.20% higher astatine ₹3,203.05 apiece connected the BSE.

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Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions. 

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Published: 28 Jun 2024, 02:49 PM IST