Synopsis:
CLSA sees Godrej Properties delivering strong presales and margin growth, with potential upside of 38.2 percent from current levels.
A real estate stock is attracting investor attention following a strong quarter and robust growth indicators. Analysts are upbeat on its improving cash flows and margin outlook, highlighting that the stock trades at a discount compared to large peers, making it an attractive pick for those seeking sustainable growth. Godrej Properties Ltd. holds a market capitalization of Rs. 61,425.01 crore and opened at Rs. 2060.80 on 3rd October 2025, Friday.
CLSA on Godrej Properties
CLSA has maintained an ‘outperform’ rating on Godrej Properties, raising its price target to Rs. 2,850, implying a potential upside of 38.2 percent from the opening price of Rs. 2060.80 on 3rd October 2025, Friday, up from an earlier target of Rs. 2,770. The brokerage highlighted that the company has closed a strong quarter with improving cash flows and margins, addressing its historical low profitability concerns.
The brokerage noted that GPL’s stock currently trades at an EV/cash EBITDA of 8.4 times, significantly lower than peers Oberoi and Lodha, which trade between 12 and 18 times, suggesting the discount is unwarranted.
CLSA emphasized that Godrej Properties, being the largest developer in India by presales, is well-positioned to continue delivering sustainable growth thanks to its geographic diversification and strong brand presence.
CLSA expects Godrej Properties to surpass its FY26 presales guidance of Rs. 325 billion. The brokerage projects presales in Q2FY26 to reach Rs. 80-85 billion, representing a roughly 15 percent increase quarter-on-quarter and a 55 percent rise year-on-year. These sales are expected to be driven by eight new project launches with an estimated gross development value (GDV) of Rs. 115 billion.
Further, the brokerage anticipates a strong H2FY26 pipeline, with new launches totaling GDV of Rs. 350 billion likely to drive higher presales than H1. Key projects expected to contribute significantly include Godrej Regal Pavillion in Hyderabad, Godrej Sora in Sector 53, Gurgaon, and Godrej MSR City II in Bangalore, along with strong interest in plotted projects in Joka and Indore. Presales from ongoing projects, supported by unsold inventory of Rs. 260 billion as of June 2025, are expected to contribute approximately Rs. 30 billion in Q2FY26.
About the Company
Founded in 1990, Godrej Properties is the real estate arm of the Godrej Group and one of India’s leading property developers. The company develops residential, commercial, retail, and IT projects across major cities including Mumbai, Pune, Bangalore, Kolkata, and Hyderabad.
A fully integrated developer under Godrej Industries, it manages projects in-house as well as through collaborations with domestic and international partners. Initially focused on the Mumbai Metropolitan Region, the company has expanded into Pune, Bengaluru, Kolkata, Hyderabad, Ahmedabad, Chennai, and Kochi.
Written By Manan Gangwar
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