Buy Godrej Properties; target of Rs 2200: Motilal Oswal

Moneycontrol • 6 days ago

Original source

Key Investment Pillars

  • Godrej Properties has a strong launch pipeline of INR320b, which is expected to drive pre-sales growth in the coming quarters.
  • The company's focus on generating better free cash flow (FCF) in the coming quarters is expected to improve its profitability profile.
  • Godrej Properties has a diversified presence across many regions, which is expected to support its sales growth.
  • The company's net debt increased in 2QFY27 due to project additions, but leverage remains at comfortable levels.

Thesis Validation Checklist

  • Investors should watch for the company's ability to meet its pre-sales guidance of INR390b in FY27.
  • The launch pipeline and sustenance sales should continue to drive growth.
  • Collections growth and operating cash flow should remain healthy.
  • The company's net debt and leverage should remain at comfortable levels.
  • Godrej Properties' ability to expand its presence in existing markets and enter new markets should be monitored.