New Delhi: Godrej Properties' stock prices rose more than 2 percent to reach a record high of Rs 3,170 each on June 28 following its announcement of the highest-ever pre-sales of Rs 22,500 crore in FY24.
This has made it the top developer in terms of bookings. In FY24, Godrej Properties experienced an 84 percent increase in pre-sales compared to the previous year, surpassing its guidance by 61 percent. After this, analysts at Motilal Oswal recommended buying Godrej Properties and raised the target price to Rs 3,600 per share, suggesting a potential increase of 13 percent from current levels.
They wrote that Godrej Properties performed outstandingly in FY24 and are confident about delivering steady growth in the medium term due to the strong demand environment.
Most of the growth in the performance came from new products introduced in the fiscal year 2024, with a 65 percent increase. 70 percent of these new launches were sold during the year.
Pre-sales in NCR tripled to reach Rs 10,000 crore, while Mumbai Metropolitan Region (MMR) more than doubled to Rs 6,500 crore. In the future, the management has projected pre-sales of Rs 27,000 crore in FY25, representing a 20 percent year-on-year increase. The company is preparing to initiate projects totalling Rs 30,000 crore in FY25 in its main markets of NCR, MMR, Bengaluru, and Pune, along with the newly ventured into the Hyderabad market.
Analysts at Motilal Oswal anticipate a significant improvement in contribution from Pune, Bengaluru, and other markets in the future, compared to the past two years which were primarily influenced by NCR and MMR, as the company shifts its focus towards monetisation after successful business development in these markets. Motilal Oswal stated that as Godrej Properties continues to expand, the improvement in cash flows and profitability will lead to a higher stock rating.
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