Godrej Properties shares: Why global brokerages see up to 53% upside potential

Major global brokerages, HSBC Global Investment Banking and Jefferies, have reiterated their 'Buy' ratings on Godrej Properties Ltd while raising target prices, citing strong growth visibility and a robust pre-sales outlook.

HSBC Global highlighted the company's consistent scale-up and confident guidance despite a challenging macro environment.

"Strong guidance in uncertain environment reflects Godrej's launch plan, its substantial business development (BD) in past years, and a demand environment without material disruption. FY26 pre-sales of Rs 34,200 crore, up 16 per cent YoY (year-on-year), following 56 per cent, 84 per cent, and 31 per cent YoY pre-sales growth over FY23, FY24, and FY25 respectively demonstrates a rapid scale-up in business. On top of this, the company has given FY27 pre-sales guidance of c14 per cent YoY in an uncertain global environment. In our view, this confidence is on the back of 14 per cent higher planned launches (Rs 48,000 crore) and largely undisturbed sales trend so far. Reported profit trend (although less relevant given the project completion methodology amidst rising scale) has also improved," the brokerage said.

HSBC Global maintained its 'Buy' call and raised the target price to Rs 2,900 from Rs 2,800 earlier. This implies a potential upside of 52.6 per cent from the assessed price of Rs 1,899.80.

Jefferies also retained a 'Buy' rating, pointing to improving financial metrics and strong medium-term growth drivers.

"Godrej Properties expects pre-sales and cash collections to grow by 14 per cent/20 per cent in FY27, on a large base. A jump in construction spends during FY26 and high quality of pre-sales in base are expected to drive a 20 per cent reported ROE and FCF turnaround by FY28. As a precursor, management announced a dividend after a decade and recently promoters bought a 5 per cent stake in the stock. We believe sustained financial parameter delivery can drive significant rerating," Jefferies said.

"The stock is trading at 11x PE on reportable PAT/embedded PAT in FY28 P&L/FY26 pre-sales estimates. Our Rs 2,475 price target (Rs 2,420 earlier) is set at 12.0x embedded PAT to March 2028 pre-sales," it added.

Jefferies' target price indicates an upside potential of 30.28 per cent.