Buy Godrej Properties: target of Rs 2293: ICICI Securities

What happened

ICICI Securities retained a BUY rating on Godrej Properties with a revised target price of Rs 2,293. The company reported H1FY27 gross sales bookings of INR 167bn, up 7% year on year, driven by INR 160bn of launches across Bengaluru, NCR, and Hyderabad.

Confirmed

Global impact / market context

The lower valuation premium means the analyst expects less extra value above the company's net asset value. Even so, strong bookings and a large launch pipeline support revenue growth, while falling net debt reduces financial risk for shareholders.

Analyst inference

Godrej Properties expects about INR 70bn of operating cash flow in the rest of FY27, which is cash from sales after running costs, helped by its scheduled deliveries. That cash could reduce net debt, which stood at INR79bn and may have peaked.

Analyst inference

What to watch

1. The company expects a strong H2FY27 launch pipeline worth INR 320bn and targets FY27 sales bookings of INR 390bn, which represents 14% year-on-year growth. Confirmed
2. ICICI Securities expects FY27 and FY28 sales bookings of INR 390bn and INR 435bn, and reduced its net asset value premium to 30% from 40% earlier. Proposed
3. Watch whether scheduled deliveries generate the expected operating cash flow, since weaker collections would slow net debt reduction and could pressure the target price. Analyst inference

Evidence

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