Godrej Properties share price is in focus today after the company announced its Q3FY25 results on February 4. The company in Q3FY25 posted a net profit of Rs 34.85 crore, a 66% YoY decline and an 83% drop compared to the previous quarter. During intraday trading, the stock is down by over 2%. That said, most brokerages are betting on it meeting the full-year guidance.
Godrej Properties: What’s the brokerage view
Most brokerage are positive on the long-term implications and growth outlook-
Morgan Stanley: Overweight on Godrej Properties
The brokerage firm Morgan Stanley, Godrej Properties continues to show resilience in its pre-sales performance and has maintained an Overweight rating with a target price of Rs 3,400 per share.
According to the brokerage house, the company’s Q3 pre-sales were 3% above estimates, and its 9MFY25 sales have already reached 71% of the full year guidance.
Furthermore, the firm in its analysis noted that there is a significant improvement in Godrej Properties debt position. The company’s net debt to equity ratio has improved to 23%, down from 70% in Q2, primarily aided by the Rs 6,000 crore QIP.
ALSO READGodrej Properties Q3 Results: Profit surges 161.19% to Rs 162.64 cr, says on-track to surpass bookings guidance of Rs 27,000 cr in FY25 HSBC: Buy rating, Target Rs 3,700
HSBC remained optimistic, maintaining a Buy rating and setting a higher target of Rs 3,700 per share. However, the brokerage house noted that the Q3 pre-sales were slightly below expectations due to missed project launches. Despite this, the brokerage believes that the company is still on the track to meet its full year FY25 guidance. Apart from this, the company is also poised to benefit from higher bookings and stronger margins.
Furthermore, the firm added that the future project completions will boost profitability.
Motilal Oswal: 44% Upside Potential, target Rs 3,435
Motilal Oswal has also maintained a Buy rating on the stock with a price target of Rs 3,435, indicating a 44% upside from the current market price. Furthermore, the firm in its report highlighted some of the key performance metrics such as the company’s pre-sales volume in Q3FY25 declined 6% YoY but remained strong at Rs 54.5 billion; for 9MFY25, the company achieved Rs 193 billion in pre-sales, up 48% YoY.
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