⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GODREJPROP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | GODREJPROP | Market Cap | 45,683 Cr. | Current Price | 1,517 ₹ | High / Low | 2,523 ₹ |
| Stock P/E | 119 | Book Value | 581 ₹ | Dividend Yield | 0.00 % | ROCE | 6.46 % |
| ROE | 6.02 % | Face Value | 5.00 ₹ | DMA 50 | 1,900 ₹ | DMA 200 | 2,109 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.36 % | PAT Qtr | 13.1 Cr. | PAT Prev Qtr | 56.1 Cr. |
| RSI | 22.4 | MACD | -136 | Volume | 10,88,835 | Avg Vol 1Wk | 23,11,278 |
| Low price | 1,475 ₹ | High price | 2,523 ₹ | PEG Ratio | 6.37 | Debt to equity | 0.89 |
| 52w Index | 3.99 % | Qtr Profit Var | -93.6 % | EPS | 12.7 ₹ | Industry PE | 30.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT dropped sharply from 56.1 Cr. to 13.1 Cr., with YoY profit variation at -93.6%, indicating weak earnings momentum.
- Margins: ROE at 6.02% and ROCE at 6.46% reflect poor profitability compared to industry peers.
- Debt Ratios: Debt-to-equity at 0.89 shows relatively high leverage for a real estate company.
- Cash Flows: Cash generation is constrained by debt servicing and weak earnings.
- Return Metrics: EPS at 12.7 ₹ is modest relative to current valuation.
💹 Valuation Indicators
- P/E Ratio: 119, significantly above industry PE of 30.2, suggesting extreme overvaluation.
- P/B Ratio: ~2.6 (Current Price / Book Value), reasonable but overshadowed by weak earnings.
- PEG Ratio: 6.37, very high, showing poor growth-adjusted valuation.
- Intrinsic Value: Current price (1,517 ₹) appears overvalued; downside risk remains unless profitability improves.
🏢 Business Model & Competitive Advantage
- Operates in real estate development with strong brand recognition under the Godrej group.
- Competitive advantage lies in brand trust, diversified projects, and pan-India presence.
- Challenges include high debt, weak profitability, and cyclical demand in real estate.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer accumulation range between 1,450 ₹ – 1,500 ₹ (near 52-week low).
- Long-Term Holding: Suitable only for high-risk investors; improvement in profitability and debt reduction is critical before long-term holding.
Positive
- Strong brand presence under Godrej group.
- Pan-India real estate portfolio.
- Domestic institutional inflows (+0.36%) show local confidence.
Limitation
- Extremely high P/E ratio (119) compared to industry average.
- Weak ROE and ROCE indicate poor profitability.
- High debt-to-equity ratio (0.89).
- No dividend yield, reducing investor appeal.
Company Negative News
- Sharp decline in quarterly PAT (-93.6%).
- Weak technical indicators (RSI 22.4, MACD -136) reflect bearish momentum.
- Reduction in FII holdings (-0.16%) shows cautious foreign investor sentiment.
Company Positive News
- Strong brand equity and diversified real estate projects.
- Rising DII inflows (+0.36%) provide some support.
Industry
- Real estate sector is cyclical, driven by demand in housing and commercial projects.
- Industry PE at 30.2 reflects moderate optimism and fair valuations.
Conclusion
- Godrej Properties shows weak fundamentals with high debt, poor profitability, and extreme valuation metrics.
- Strong brand presence is a positive, but earnings weakness limits upside.
- Best suited for high-risk investors; safer entry near support levels with close monitoring of debt and profitability trends.
I can also prepare a comparison with peers like DLF or Oberoi Realty to highlight how Godrej Properties stacks up in terms of valuation and profitability.