Godrej Properties shares rise 2% after 15% YoY surge in Q1 PAT. Should you buy, sell or hold?
ADVERTISEMENT The real estate developer reported a consolidated profit after tax (PAT) of Rs 600 crore in Q1FY26. However, total income for the quarter declined 3% YoY to Rs 1,593 crore, down from Rs 1,638 crore in the same period last year.
Despite the dip in income, operational momentum remained strong. The company achieved a booking value of Rs 7,082 crore during the quarter, driven by the sale of 4,231 apartments covering a total area of 6.17 million square feet.
While this marked an 18% YoY decline in area sold, it was the eighth consecutive quarter in which Godrej Properties recorded bookings exceeding Rs 5,000 crore.During the quarter, the company launched six new projects and phases, with a combined sales potential of Rs 8,500 crore. Additionally, collections rose 22% YoY to Rs 3,670 crore, reflecting strong cash inflows.
ADVERTISEMENT Antique has revised its target price for Godrej Properties to Rs 2,723 from Rs 3,101 while maintaining a 'Buy' rating.The brokerage said the company delivered a decent Q1 performance with continued momentum in business development (BD). However, it flagged concerns around the high base effect, noting that sustaining growth and margins may be challenging. It also revised its EV/EBITDA multiple down to 9x from 10x, reflecting a moderating growth outlook. The target price is based on 1HFY28E estimates, and the long-term view remains positive.
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Avendus lowered its target price to Rs 1,750 from Rs 1,800, retaining a 'Sell' rating.
ADVERTISEMENT It expects pre-sales to stabilize after a 2.5x surge over the past three years. The brokerage also noted that higher construction outflows led to a YoY decline in Q1FY26 operating cash flow (OCF) despite better collections. It projects OCF to tighten to Rs 5,000–6,000 crore over FY26–27 due to continued cost pressures. Net debt is expected to rise to Rs 7,000 crore by FY27 from Rs 4,000 crore in FY25. The stock is currently trading at 9x FY27E EV/EBITDA.Motilal Oswal (MOSL) maintained a 'Buy' rating with a target price of Rs 2,843.
ADVERTISEMENT The brokerage noted that revenue was impacted by soft deliveries in Q1, but expects upcoming launches to drive pre-sales. The company has already achieved 57% of its annual BD target. Strong housing demand and industry consolidation are seen as key growth drivers. For FY26, Godrej Properties has guided for Rs 40,000 crore in launches and Rs 32,500 crore in pre-sales. MOSL has retained its pre-sales estimates for FY26 and FY27.
Also read: Rekha Jhunjhunwala exits Nikhil Kamath, Madhusudan Kela-backed smallcap stock with 111% returns in 3 years
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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