GODREJPROP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.5

📊 Core Financials Breakdown

Profitability

ROE: 6.02% and ROCE: 6.46% — modest returns, below ideal for a ₹60,000+ Cr market cap real estate firm.

EPS: ₹19.7 — relatively low, especially given the high valuation.

PAT Qtr: ₹56.1 Cr vs ₹279 Cr — steep 88.6% decline, likely due to one-off items or project timing.

Balance Sheet & Leverage

Debt-to-Equity: 0.69 — moderate leverage, typical for real estate developers.

Book Value: ₹579 — implies a P/B ratio of ~3.6, reasonable for a premium brand.

Dividend Yield: 0.00% — no income for long-term holders.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 109 Extremely high vs industry average (40.7) — overvalued

PEG Ratio 5.83 Very expensive relative to growth expectations

Intrinsic Value ~₹1,850–₹1,950 CMP slightly above fair value zone

Valuation is stretched and not supported by current earnings or return metrics.

🏗️ Business Model & Competitive Edge

Sector: Real Estate — residential, commercial, and township development.

Strengths

Part of the Godrej Group — strong brand equity and trust.

Pan-India presence with high-value projects in Mumbai, Pune, NCR, and Hyderabad.

Recent land acquisitions in Hyderabad with ₹3,800 Cr revenue potential

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FII holding stable, but DII holding slightly down — mixed institutional sentiment.

Challenges

High valuation multiples and weak quarterly earnings.

Execution risk and regulatory delays in real estate sector.

No dividend policy and low ROE/ROCE.

📉 Technicals & Entry Zone

Current Price: ₹2,090

DMA 50: ₹2,081 | DMA 200: ₹2,256 — trading below long-term average

RSI: 58.3 — neutral zone

MACD: Negative — momentum cooling

📌 Suggested Entry Zone: ₹1,850–₹1,950

A dip near the intrinsic value range would offer a better margin of safety.

🧭 Long-Term Holding Guidance

Hold with caution: If already invested, monitor project execution and earnings recovery.

Avoid fresh entry at CMP: Wait for valuation to cool or for earnings to justify the premium.

Analysts forecast strong long-term growth driven by urban demand and digital integration

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. You can explore Godrej Properties’ full financials and valuation metrics or review its analyst consensus and fair value estimates for deeper insights. Let me know if you'd like a peer comparison with DLF or Oberoi Realty.

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stockanalysis.com

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simplywall.st

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