Godrej Properties share Price up by 7% on Strong Pre-Sales

JP Morgan has upgraded its rating on the stock to 'Overweight' and increased the target price to ₹3,100, citing the company’s projected pre-sales for FY24. The brokerage also highlighted that sales growth in Mumbai is a positive development, as the company is effectively leveraging opportunities in its home market.

Nuvama has retained its 'Hold' recommendation for Godrej Properties shares, while increasing the target price from ₹2,338 to ₹2,828. Meanwhile, Jefferies advocates a 'Buy' position on the stock, setting a target price of ₹3,175.

On May 3, 2024, Godrej Properties announced its Q4FY24 results, revealing a 14% rise in profit after tax (PAT) to ₹471 crore, up from ₹412 crore in Q4FY23. This impressive result was fueled by the sale of 8.17 million square feet. of area, setting a record for the highest-ever quarterly sales by a listed developer in India. According to the company's investor presentation, the booking value for Q4 FY24 has surpassed the total booking value for FY22.

Driven by robust demand for its newly launched projects, Godrej Properties achieved record-breaking pre-sales in Q4FY24, totaling ₹9,500 crore, which represents a 135% increase compared to the previous year. Additionally, collections during the same period increased to ₹4,700 crore, up 23% year-over-year.

Nuvama has indicated optimism regarding the continued sales momentum due to the shifting dynamics in the housing cycle, stating, "With the housing cycle turning we reckon the sales momentum shall stay." Significantly, Godrej Properties reported FY24 pre-sales of ₹22,500 crore, marking an 86% increase from the previous year and exceeding the projected target of ₹14,000 crore. For FY25, the company projects pre-sales to reach ₹27,000 crore.

Motilal Oswal has expressed confidence that Godrej Properties will continue to excel in terms of growth, cash flows, and profit margins, bolstered by its robust project pipeline and strong financial performance. The brokerage has reaffirmed its 'Buy' rating on the stock, raising its target price to ₹3,000 per share.

In Q4 FY24, Godrej Properties saw its collections reach ₹4,693 crore, demonstrating a notable 23% year-on-year increase. The city-specific sales figures revealed a booking value of ₹4,022 crore from 1,393 units sold in the Mumbai Metropolitan Region (MMR), covering a total sales area of 2.53 million square feet.