⚠ 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: 3.5
| Stock Code | GODREJPROP | Market Cap | 49,462 Cr. | Current Price | 1,643 ₹ | High / Low | 2,506 ₹ |
| Stock P/E | 119 | Book Value | 581 ₹ | Dividend Yield | 0.00 % | ROCE | 6.46 % |
| ROE | 6.02 % | Face Value | 5.00 ₹ | DMA 50 | 1,764 ₹ | DMA 200 | 2,004 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.36 % | PAT Qtr | 69.3 Cr. | PAT Prev Qtr | 13.1 Cr. |
| RSI | 43.6 | MACD | -50.2 | Volume | 8,63,424 | Avg Vol 1Wk | 8,10,701 |
| Low price | 1,475 ₹ | High price | 2,506 ₹ | PEG Ratio | 6.33 | Debt to equity | 0.89 |
| 52w Index | 16.3 % | Qtr Profit Var | 98.8 % | EPS | 13.6 ₹ | Industry PE | 25.5 |
📊 Core Financials
- Quarterly PAT improved from ₹13.1 Cr. to ₹69.3 Cr., showing strong sequential growth.
- ROCE at 6.46% and ROE at 6.02% → weak efficiency compared to peers.
- Debt-to-equity ratio of 0.89 → moderately leveraged balance sheet.
- Cash flows supported by real estate operations but cyclical in nature.
💹 Valuation Indicators
- P/E Ratio: 119 vs Industry PE of 25.5 → extremely overvalued.
- P/B Ratio: ~2.8x (₹1643 / ₹581) → moderate valuation relative to book value.
- PEG Ratio: 6.33 → expensive valuation relative to growth.
- Intrinsic Value: Current price above fair zone, reflecting speculative optimism in real estate sector.
🏢 Business Model & Competitive Advantage
- Real estate developer with strong brand under Godrej group.
- Focus on premium residential projects provides brand advantage.
- High leverage and weak efficiency metrics limit competitiveness.
📈 Technical & Entry Zone
- Current Price: ₹1643, below 50 DMA (₹1764) and 200 DMA (₹2004).
- RSI: 43.6 → neutral zone, slightly weak momentum.
- MACD: -50.2 → bearish trend.
- Entry Zone: Attractive accumulation between ₹1500–₹1550.
- Long-Term Holding: Suitable only for high-risk investors with 3–5 year horizon.
✅ Positive
- Strong sequential PAT growth (98.8%).
- Brand strength under Godrej group.
- DII holdings increased by 0.36%, showing institutional support.
⚠️ Limitation
- Extremely high P/E ratio (119).
- Weak ROE and ROCE compared to peers.
- Moderate debt levels increase risk.
📉 Company Negative News
- Stock corrected sharply from 52-week high of ₹2506.
- Decline in FII holdings (-0.16%).
📈 Company Positive News
- Quarterly PAT growth of 98.8% shows strong momentum.
- DII inflows indicate domestic institutional confidence.
🏭 Industry
- Real estate sector supported by urbanization and housing demand.
- Industry PE at 25.5 indicates moderate investor confidence.
🔎 Conclusion
GODREJPROP is a branded real estate developer with strong sequential profit growth but weak efficiency metrics and high leverage.
Valuations are stretched with an extremely high P/E ratio, making it risky for long-term investors.
Best accumulated cautiously around ₹1500–₹1550 for high-risk investors with a 3–5 year horizon.