Buy Godrej Properties, target price Rs 1575: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Godrej Properties with a target price of Rs 1575. The current market price of Godrej Properties is Rs 1208.7.

Godrej Properties, incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 33655.83 Crore) operating in Real Estate sector.

Godrej Properties key Products/Revenue Segments include Income From Real Estate Development, Sale of services, Other Operating Revenue and Lease Rentals for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 404.58 Crore, up 9.58 % from last quarter Total Income of Rs 369.20 Crore and down -13.35 % from last year same quarter Total Income of Rs 466.91 Crore. Company has reported net profit after tax of Rs 94.51 Crore in latest quarter.

The company’s top management includes Mr.Adi B Godrej, Mr.Pirojsha Godrej, Mr.Mohit Malhotra, Mr.Jamshyd N Godrej, Mr.Nadir B Godrej, Mr.Keki B Dadiseth, Mrs.Lalita D Gupte, Mr.Amitava Mukherjee, Ms.Sutapa Banerjee. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 28 Crore shares outstanding.

Investment Rationale
While the company continues to provide strong visibility on pre-sales growth with pick up in business development activity, stock performance continues to remain muted, which reflects a concern on profitability. However, with expected improvement in delivery and profitability from 4QFY23, the brokerage believes the re-rating triggers are imminent.

Promoter/FII Holdings
Promoters held 58.48 per cent stake in the company as of 31-Dec-2022, while FIIs owned 27.41 per cent, DIIs 4.4 per cent.