Promoters held 64.5 per cent stake in the company as of March 31, 2020, while FIIs held 19.2 per cent, DIIs 5 per cent and public and others 11.3 per cent.
By ETMarkets.com | Updated:
Agencies
The brokerage said that GPL is placed well to maintain its leadership in the realty space.
Edelweiss has given a buy rating to Godrej Properties with a target price of Rs 1058. The share price moved up by 3.99 per cent from its previous close of Rs 878.55. The stock’s last traded price is Rs 913.60.
While the lockdown and ongoing labour issues will adversely impact earnings (and hence RoE) in the near term, the company believes that the pandemic will: i) drive preference among buyers for leading developers; and ii) fuel desire for home ownership and the security it provides. Consequently, GPL is ready to launch projects and thereby gain share while most of its peers are busy trying to liquidate inventories. The company is open to project acquisitions at distressed valuations. Financials For the quarter ended 31-03-2020, the company reported a Consolidated sales of Rs 1163.05 Crore, up 203.81 % from last quarter Sales of Rs 382.82 Crore and up 10.44 % from last year same quarter Sales of Rs 1053.09 Crore. The Company reported net profit after tax of Rs 128.72 Crore in latest quarter.
Investment Rationale The brokerage said that GPL is placed well to maintain its leadership in the realty space. We believe GPL’s strong brand and lean balance sheet will enable it to continue to gain market share. On balance, for GPL, the brokerage is reducing the NAV discount from 15% to 10% and WACC from 12% to 11%. The brokerage maintains ‘BUY/SO’ with a TP of Rs 1,058/share (10% discount to NAV of Rs 1,176/share). Promoter/FII Holdings Promoters held 64.5 per cent stake in the company as of March 31, 2020, while FIIs held 19.2 per cent, DIIs 5 per cent and public and others 11.3 per cent.
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