Target: ₹2,475
Current Market Price (CMP): ₹1,809.50
Godrej Properties (GPL) reported a net profit before exceptional items of ₹650 crore for the fourth quarter, reflecting a year-on-year increase of over 70%. This growth was fueled by a robust revenue increase, which surged 63% to a record ₹3,460 crore. The financial performance exhibited volatility on a quarter-on-quarter basis, largely due to a significant rise in project deliveries, with GPL completing 7.4 million square feet of projects in the quarter. For the fiscal year 2026, the total deliveries reached 12.1 million square feet, surpassing the initial guidance of 10 million square feet.
Management has projected a 14% growth in pre-sales, anticipating sales to reach ₹39,000 crore for fiscal year 2027. Additionally, the company plans to launch projects valued at ₹48,000 crore in FY27, an increase from the ₹42,200 crore planned in FY26, which is expected to bolster pre-sales momentum. Despite a mid-cycle growth outlook for the broader property market, management emphasized that these forecasts are contingent upon the geopolitical landscape remaining stable.
The reported profits and free cash flow (FCF) generation for GPL have shown improvement, with a profit after tax (PAT) increase of over 32% in FY26. Notably, 95% of major land and project expenditures have been funded internally. Management aims to scale up deliveries to over 20 million square feet by FY28, supported by substantial pre-sales baselines and rising customer collections. The company believes that achieving a 20% return on equity (ROE) target and maintaining a positive net FCF by FY28 is feasible.
The stock is currently trading at an 11x price-to-earnings (PE) ratio based on reportable PAT and embedded PAT from FY28 P&L along with FY26 pre-sales estimates. The price target of ₹2,475—up from ₹2,420—is based on a 12.0x embedded PAT relative to March 2028 pre-sales. The recommendation remains a ‘Buy.’
Published on May 5, 2026
