GODREJPROP - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.4

🧾 Financial Snapshot & Return Ratios

EPS (₹46.5) and P/E (53.4): Earnings are respectable, but the high valuation suggests growth is already priced in.

PAT (₹378 Cr vs ₹158 Cr prev): YoY jump, yet Qtr variation is -19.7% — pointing to a potential plateau or one-off distortion.

ROCE (6.57%) & ROE (8.91%): Lower than ideal for a large-cap developer — indicates suboptimal capital efficiency.

Debt-to-Equity (0.73): Moderately leveraged — typical for real estate but requires consistent cash flows for comfort.

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 53.4 High vs industry PE (40.2) — demanding valuation

P/B Ratio ~3.75 Premium on net assets — not unusual for branded players

PEG Ratio 0.97 Fair — valuation aligns with growth projections

Intrinsic Value — Estimated range ₹1,950–₹2,050 — slightly overvalued

📉 At current levels, there's limited headroom unless growth accelerates meaningfully.

🏗️ Business Model & Strategic Positioning

Nature: Branded real estate with focus on Tier-1 urban markets.

Advantages

Leverages the Godrej brand — aids premium pricing and customer trust.

Asset-light strategy via joint development helps manage capital intensity.

Challenges

Weak ROE/ROCE compared to realty peers like Oberoi or Prestige.

DII holding ↓ (-0.26%) signals tempered institutional sentiment.

No dividend payout — entire earnings are reinvested or debt-serviced.

📉 Technical Indicators & Entry Strategy

Current Price: ₹2,155

DMA 50 / DMA 200: ₹2,284 / ₹2,357 — price is trending below key averages

RSI (36.9): Approaching oversold — possible accumulation zone soon

MACD (-27.6): Strong bearish signal — caution advised

Volume: Slightly below average — retail interest cooling

🛒 Suggested Entry Zone: ₹1,950–₹2,050 Wait for RSI to rebound above 45 and MACD to flatten. Avoid chasing — better risk-reward may emerge post-consolidation.

🧭 Long-Term Investment Outlook

Potential upside tied to urban housing demand, brand premium, and margin expansion from new launches.

Must see ROE ≥ 12% and ROCE ≥ 10% in upcoming quarters to justify premium valuation.

Real estate cycles tend to be long — patient holding with periodic reassessment recommended.

Curious how it stacks up against DLF, Prestige Estates or Oberoi Realty? I can model a clean valuation matrix next and help clarify where Godrej stands in the real estate leaderboard. 🏙️📊 Let’s carve up the skyline!

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