Godrej Properties preferred pick in property space, says CLSA

Foreign brokerage CLSA on Wednesday said Godrej Properties is its preferred pick in the property sector.

Godrej Properties is well-positioned to enjoy the benefit of accelerating sector consolidation, said CLSA which has a buy rating on the stock with a target price of Rs 1,024.

"Access to cheap financing, timely balance sheet de-leveraging in 2018 and a strong track-record of partnerships with landlords will help it gain new projects as weaker hands exit," said CLSA.


A good delivery track-record will keep its projects in demand, it added. Godrej Properties launched seven new projects in the third quarter of FY19 as weaker companies struggled to ensure liquidity for completing their ongoing projects.

"An upturn in the property cycle, likely in 2H, would be an added plus," said CLSA.