JM Financial has initiated a coverage on Godrej Properties with a buy call at a target price of Rs 2,500 The current market price of Godrej Properties is Rs 2122.25. The time period given by the analyst is a year when Godrej Properties price can reach the defined target. Godrej Properties, incorporated in 1985, is a Large Cap company with a market cap of Rs 64100.88 crore, operating in the 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-2024.

Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 1239.97 crore, down -7.91% from last quarter Total Income of Rs 1346.54 crore and up 126.14% from last year same quarter Total Income of Rs 548.31 crore. The company has reported net profit after tax of Rs 176.48 crore in the latest quarter.

The company's top management includes Mr.Adi B Godrej, Mr.Pirojsha Godrej, Mr.Gaurav Pandey, Mr.Nadir B Godrej, Ms.Sutapa Banerjee, Dr.Indu Bhushan, Ms.Jayashree Vaidhyanathan, Mr.Sumeet Narang. Company has B S R & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 30 crore shares outstanding.

Investment Rationale
Godrej Properties continues to do exceedingly well in pre-sales and business development. Post the fund-raise, it is well placed to further penetrate its existing markets while continuing opportunistic acquisition beyond the top 5 cities. JM Financial has initiated coverage on the company with a BUY rating and target price of Rs 2,500 implying 17% upside. Key risks are: (1) Prolonged slowdown in residential absorption, (2) Undertaking margin dilutive BD given the increased competition and (3) Inability to deliver improvement in profitability as anticipated.

Promoter/FII Holdings
Promoters held 46.5 per cent stake in the company as of 31-Dec-2024, while FIIs owned 30.85 per cent, DIIs 9.36 per cent.