Godrej Properties – Brand, Business model & Scale

Stock Opportunities
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Godrej Properties have delivered another stellar quarter with bookings of 18.21 million sqft having value of 19281 Crores in the past 9 months.

I have updated my rough valuation calculations as per the current quarter results. Also reduced the forward PE from 25 to 20 as growth may slow down. Net Profit Margin is considered as 13.5% while the GP has committed to 15% in Concall. It seems to be trading at 12% discount to fair value.

  • FY2025E Booking Value: 27000 Crores
  • Pre-Tax Profit (18% of Sales): 4860 Crores
  • Post-Tax Profit (75% of Pre-Tax Profit): 3645 Crores
  • Expected MCap @ PE = 20: 72,900 Crores
  • Current MCap (10-Feb-24): 64,000 Crores (2125/share)

Please note this is NOT a buy or sell advice. I am NOT a SEBI registered adviser.

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