Godrej Properties Jumps 2%, Reaches New Record FY24 Pre-Sales

Godrej Properties share price surged over 2% to reach an all-time high on June 28 after the company reported record pre-sales of ₹22,500 crore in FY24. At 2:45 pm IST, Godrej Properties shares were trading 3.20% higher at ₹3,203.05 apiece on the BSE. 

With this achievement, Godrej Properties has become the largest developer in terms of bookings. The company's pre-sales rose by 84% year-on-year (YoY) in FY24, surpassing its guidance by 61%. Following this performance, analysts at Motilal Oswal have issued a 'buy' recommendation for Godrej Properties and raised the target price to ₹3,600 per share, indicating a potential upside of 13% from current levels.

"Godrej Properties delivered an exceptional performance in FY24 and given the healthy demand environment, the management is confident of delivering consistent growth over the medium term," they wrote.

The impressive performance was primarily driven by new launches, which increased by 65% in FY24. Of these new launches, 70% were absorbed during the year, contributing 70% to the total pre-sales. Pre-sales in the NCR region tripled to ₹10,000 crore, while those in the Mumbai Metropolitan Region (MMR) more than doubled to ₹6,500 crore.

Looking ahead, the management has projected pre-sales of ₹27,000 crore in FY25, indicating a 20% year-on-year growth. The company plans to launch projects worth ₹30,000 crore in FY25 across its core markets, including NCR, MMR, Bengaluru, and Pune, as well as the recently entered Hyderabad market.

Contrary to the performance of the last two years, which was primarily driven by NCR and MMR, analysts at Motilal Oswal expect significant improvement in contributions from Pune, Bengaluru, and other markets in the future. This expectation is based on the company's increased focus on monetization following strong business development in these areas.

“The increase in cash flows and ₹3,000 crore of surplus cash will support higher spending without affecting the balance sheet. While Godrej Properties will continue to build on its growth path, the turnaround in cash flows and profitability, which has been a key investor concern, will drive further re-rating in the stock," Motilal Oswal said. 

So far this year, shares of Godrej Properties have surged over 56%, significantly outperforming the benchmark Nifty 50 index, which has risen by 10% during the same period.