Motilal Oswal has given Buy on the stock with a revised price target (PT recommendation for Godrej Properties with a target price of Rs. lal Oswal is bullish on Godrej Properties has recommended buy on the stock with a revised price target (PT) of Rs. 1,800 in its research report issued on Feb 03, 2022
The company announced its intention to invest in DB Realty (DB, not rated) through convertible warrants in order to explore slum rehabilitation (SRA) and Maharashtra Housing and Area Redevelopment Authority (MHADA) redevelopment opportunities through a JV under a separate SPV. With 90msf of the executable pipeline and INR40b of surplus cash, we expect the scale-up in pre-sales and cash flows would continue. However, at 3.3x P/NAV, we believe the larger part of the growth is baked into the valuation. Furthermore, the partnership with DB Realty would be a nearterm overhang until there is project visibility. We maintain our NEUTRAL rating on the stock, with revised SoTP-based TP of INR 1,800 v/s INR 2,100 earlier.