Godrej Properties Ltd
Godrej Properties Ltd
Consumer Discretionary F&OGodrej Properties Limited (GPL) is the real estate development arm of the Godrej Group, which was started in 1897 and is today one of India’s most successful conglomerates. Godrej Properties brings the Godrej Group philosophy of innovation, sustainability, and excellence to the real estate industry. [1]
Godrej Properties shows strong profit growth of 59.8% CAGR over 5 years and has 67% analyst buy ratings, but a low ROE of 9% over 3 years, elevated P/B of 2.85x, and a 26% stock decline in the past year suggest the risk-reward is not compelling at current levels.
Key Fundamentals
MidcapResidential Commercial ProjectsRealtyTechnical Indicators
Key Insights
Strengths
3- Company is expected to give good quarter
- Company has delivered good profit growth of 59.8% CAGR over last 5 years
- Promoter holding has increased by 4.49% over last quarter.
Weaknesses
5- Stock is trading at 2.86 times its book value
- Company has a low return on equity of 9.03% over last 3 years.
- Company might be capitalizing the interest cost
- Earnings include an other income of Rs.3,256 Cr.
- Promoter holding has decreased over last 3 years: -6.82%
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoGodrej Properties shows strong profit growth of 59.8% CAGR over 5 years and has 67% analyst buy ratings, but a low ROE of 9% over 3 years, elevated P/B of 2.85x, and a 26% stock decline in the past year suggest the risk-reward is not compelling at current levels.
- Exceptional compounded profit growth of 57% CAGR over 3 years demonstrates strong earnings momentum
- 67% of analysts (14 out of 21) rate the stock a Buy, reflecting broad institutional confidence
- Promoter holding increased by 4.49% in the last quarter, signaling insider confidence at current valuations
- 5-year compounded sales growth of 46% CAGR indicates robust top-line expansion in a cyclical sector
- TTM profit growth of 52% shows continued acceleration in earnings even on a higher base
- 10-year stock CAGR of 18% demonstrates long-term wealth creation track record
- Market cap of Rs.53,913 Cr positions it as a large-cap real estate play with liquidity and institutional ownership
- Stock has declined 26% in the past 1 year, significantly underperforming broader markets
- 3-year average ROE of only 9% is poor for a company trading at 2.85x book value
- P/E of 29.6x is expensive given the low ROE of 9-10%, implying inadequate return on capital relative to valuation
- Earnings include other income of Rs.3,256 Cr, raising questions about the quality and sustainability of core operating profit
- Promoter holding has decreased by 6.82% over the last 3 years despite the recent quarterly increase
- Company might be capitalizing interest costs, which flatters reported margins and understates true operating expenses
- TTM sales growth has decelerated sharply to just 4% compared to the 3-year CAGR of 32%, signaling a potential slowdown
- Dividend yield of only 0.55% offers minimal income cushion during periods of capital depreciation
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Stock down 22% in past year Jun 1
Godrej Properties shares have shed roughly 22% over the past year and are down nearly 13% year-to-date, significantly underperforming the Nifty Midcap 50 index from a 52-week high of ₹2,506.50.
- Net debt near ₹10,000 cr cap Jun 1
Net debt stood at ₹9,897 crore as of March 2026 against a self-imposed cap of ₹10,000 crore, leaving limited headroom after acquiring 18 land parcels in FY26 with ₹42,100 crore combined revenue potential.
- Greater Noida land for ₹7,000 cr Jun 1
Won a 23.2-acre residential land parcel in DMIC integrated township, Greater Noida via e-auction for over ₹500 crore, with estimated revenue potential exceeding ₹7,000 crore and proximity to the upcoming Jewar airport.
- Bengaluru launch sells ₹2,000 cr+ Jun 9
Godrej Vanantara in South Bengaluru sold over 1,000 homes covering 1.8 million sq. ft. worth ₹2,000+ crore in launch week, from a 36-acre project with total revenue potential of ~₹3,700 crore.
- Q4 FY26 profit up 70% Jun 9
Consolidated net profit rose 70.13% YoY to ₹649.88 crore in Q4 FY26, with total income growing 41.98% to ₹3,806.65 crore. Full-year net profit reached ₹1,850.20 crore vs ₹1,399.89 crore in FY25.
- FY27 booking target ₹39,000 cr Jun 1
Company targets ₹39,000 crore in sales bookings for FY27 and ₹24,000 crore in customer collections, up from a record ₹34,171 crore booking value in FY26 (16% YoY growth).
- ₹10 dividend declared for FY26 Jun 19
Board recommended a ₹10 per share dividend for FY26, with the 41st AGM scheduled for August 4, 2026 via video conferencing.
- 18 land parcels added in FY26 Jun 1
Acquired 18 land parcels during FY26 with combined revenue potential of ₹42,100 crore, reflecting an aggressive expansion strategy across key Indian metros including NCR, Bengaluru, and Mumbai.
- ₹22.96 cr block trade on NSE Jun 23
A block trade of approximately 1,26,070 shares at ₹1,820.90 per share aggregating ₹22.96 crore was executed on NSE, indicating institutional-level activity.
- No promoter share encumbrance Jun 17
Promoters confirmed zero encumbrance on their shareholding during FY26 per SEBI Regulation 31(4) filing.
- Analyst meet scheduled June 4 May 30
Godrej Properties will host an analyst and institutional investor meet on June 4, 2026 in Mumbai covering the latest quarterly investor presentation.
TL;DR: Godrej Properties is executing strongly on both sales and land acquisition fronts — Q4 profit surged 70%, Bengaluru launch delivered ₹2,000 cr in a week, and the Greater Noida land win adds ₹7,000 cr revenue potential. The key risk is balance sheet stretch with net debt at ₹9,897 crore near its ₹10,000 crore cap after an aggressive 18-parcel FY26 acquisition spree. The stock remains 22% off its 52-week high despite operational outperformance, suggesting the market is pricing in leverage concerns. If the company delivers on its ₹39,000 crore FY27 booking target and generates strong operating cash flows, re-rating could follow.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,646 | 936 | 343 | 330 | 1,426 | 739 | 1,093 | 969 | 2,122 | 435 | 740 | 498 | 3,458 |
| Expenses | 1,300 | 1,085 | 438 | 397 | 1,303 | 926 | 1,064 | 960 | 2,047 | 705 | 1,336 | 695 | 2,936 |
| Operating Profit | 346 | -149 | -95 | -66 | 123 | -187 | 29 | 9 | 75 | -270 | -596 | -197 | 522 |
| OPM % | 21% | -16% | -28% | -20% | 9% | -25% | 3% | 1% | 4% | -62% | -80% | -40% | 15% |
| Other Income | 284 | 379 | 262 | 218 | 526 | 960 | 253 | 271 | 559 | 1,186 | 1,210 | 514 | 434 |
| Interest | 54 | 30 | 48 | 43 | 31 | 41 | 45 | 42 | 46 | 33 | 22 | 31 | 52 |
| Depreciation | 7 | 7 | 7 | 14 | 16 | 17 | 18 | 18 | 21 | 22 | 26 | 32 | 36 |
| PBT | 570 | 193 | 111 | 95 | 601 | 716 | 219 | 220 | 567 | 861 | 566 | 255 | 869 |
| Tax % | 20% | 31% | 35% | 34% | 20% | 28% | -52% | 28% | 33% | 30% | 29% | 24% | 26% |
| Net Profit | 454 | 134 | 73 | 63 | 478 | 519 | 334 | 158 | 378 | 598 | 403 | 194 | 645 |
| EPS in Rs | 14.82 | 4.49 | 2.4 | 2.24 | 16.95 | 18.7 | 12.06 | 5.4 | 12.68 | 19.92 | 13.45 | 6.48 | 21.58 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,843 | 2,123 | 1,583 | 1,604 | 2,817 | 2,441 | 765 | 1,825 | 2,252 | 3,036 | 4,923 | 5,131 |
| Expenses | 1,586 | 1,986 | 1,330 | 1,819 | 2,639 | 2,181 | 1,214 | 1,880 | 2,045 | 3,165 | 4,997 | 5,585 |
| Operating Profit | 257 | 137 | 253 | -216 | 178 | 260 | -449 | -56 | 207 | -130 | -74 | -453 |
| OPM % | 14% | 6% | 16% | -13% | 6% | 11% | -59% | -3% | 9% | -4% | -2% | -9% |
| Other Income | 83 | 146 | 150 | 499 | 419 | 473 | 568 | 761 | 787 | 1,326 | 2,044 | 3,256 |
| Interest | 5 | 41 | 104 | 150 | 234 | 220 | 185 | 167 | 174 | 152 | 174 | 137 |
| Depreciation | 10 | 14 | 14 | 16 | 14 | 21 | 20 | 21 | 24 | 45 | 74 | 116 |
| PBT | 326 | 228 | 284 | 117 | 348 | 493 | -86 | 516 | 795 | 1,000 | 1,723 | 2,551 |
| Tax % | 28% | 30% | 27% | 26% | 27% | 44% | 121% | 32% | 22% | 25% | 19% | 28% |
| Net Profit | 236 | 160 | 207 | 87 | 253 | 274 | -189 | 351 | 621 | 747 | 1,389 | 1,841 |
| EPS in Rs | 9.58 | 7.33 | 9.56 | 4.01 | 11.04 | 10.73 | -6.82 | 12.68 | 20.55 | 26.08 | 46.48 | 61.43 |
| Div. Payout % | 21% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 16% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 100 | 108 | 108 | 108 | 115 | 126 | 139 | 139 | 139 | 139 | 151 | 151 |
| Reserves | 1,747 | 1,657 | 1,896 | 1,102 | 2,354 | 4,678 | 8,181 | 8,536 | 9,125 | 9,853 | 17,162 | 19,005 |
| Borrowings | 3,486 | 3,123 | 3,980 | 3,703 | 3,516 | 3,715 | 4,542 | 5,196 | 6,431 | 10,679 | 12,641 | 15,894 |
| Other Liabilities | 2,030 | 1,691 | 1,197 | 3,358 | 2,107 | 1,586 | 3,385 | 3,932 | 7,410 | 15,063 | 25,496 | 46,845 |
| Total Liabilities | 7,363 | 6,578 | 7,181 | 8,271 | 8,092 | 10,106 | 16,247 | 17,804 | 23,105 | 35,735 | 55,450 | 81,894 |
| Fixed Assets | 117 | 107 | 102 | 113 | 97 | 113 | 174 | 183 | 218 | 997 | 1,271 | 1,711 |
| CWIP | 73 | 1 | 0 | 71 | 100 | 163 | 229 | 340 | 653 | 250 | 116 | 169 |
| Investments | 0 | 664 | 760 | 1,454 | 2,637 | 3,571 | 5,243 | 4,883 | 2,534 | 3,150 | 5,951 | 5,511 |
| Other Assets | 7,173 | 5,807 | 6,319 | 6,633 | 5,259 | 6,259 | 10,600 | 12,397 | 19,700 | 31,337 | 48,112 | 74,503 |
| Total Assets | 7,363 | 6,578 | 7,181 | 8,271 | 8,092 | 10,106 | 16,247 | 17,804 | 23,105 | 35,735 | 55,450 | 81,894 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -941 | 490 | -566 | 1,155 | 478 | -232 | -671 | -452 | -2,861 | -693 | -2,242 | -2,003 |
| Investing | -96 | 191 | 14 | -973 | -971 | -1,721 | -3,317 | 127 | 2,564 | -1,974 | -4,273 | 622 |
| Financing | 852 | -554 | 335 | -493 | 970 | 1,974 | 4,259 | 235 | 832 | 3,258 | 6,710 | 938 |
| Net Cash Flow | -184 | 126 | -217 | -311 | 476 | 22 | 271 | -90 | 536 | 591 | 194 | -444 |
| Free Cash Flow | -951 | 466 | -575 | 1,005 | 404 | -295 | -797 | -592 | -3,161 | -1,386 | -2,450 | -2,382 |
| CFO/OP | -320 | 435 | -161 | -568 | 290 | -79 | 153 | 469 | -1,301 | 330 | 2,689 | 359 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 34 | 30 | 53 | 36 | 21 | 65 | 114 | 38 | 58 | 37 | 32 | 39 |
| Inventory Days | — | — | — | 5,457 | 495 | — | — | — | — | — | — | 7,155 |
| Days Payable | — | — | — | 457 | 56 | — | — | — | — | — | — | 730 |
| Cash Conversion Cycle | 34 | 30 | 53 | 5,035 | 461 | 65 | 114 | 38 | 58 | 37 | 32 | 6,464 |
| Working Capital Days | 309 | 185 | 262 | -251 | -128 | -32 | 912 | 476 | 533 | 602 | 612 | 752 |
| ROCE % | 5% | 5% | 7% | 1% | 10% | 9% | 1% | 5% | 6% | 6% | 7% | 8% |
Documents
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Company Information
Godrej Properties Limited (GPL) is the real estate development arm of the Godrej Group, which was started in 1897 and is today one of India’s most successful conglomerates. Godrej Properties brings the Godrej Group philosophy of innovation, sustainability, and excellence to the real estate industry. [1]