Monday, August 16, 2021

Godrej Properties Ltd (533150) – Focusing on Mumbai market

Godrej Properties Ltd (533150) closes   at ₹1547.10 with  a  Fall   of   -0.70%   on    on    13-August-2021  with formation of  a  Small Red Candle    on Daily  Price Chart.

About the Company : Godrej Properties Limited (GPL) is the real estate development arm of the Godrej Group, which was started in 1897 and is today one of India’s most successful conglomerates. Godrej Properties brings the Godrej Group philosophy of innovation, sustainability, and excellence to the real estate industry.

Sector Update :  Positive

Financials : Godrej Properties Ltd has posted Net Sales / Revenue   of ₹764.90 Cr & Net Loss of  - ₹189.40 Cr in FY2021 and expected to post Net Sales / Revenue   of ₹1618.70 Cr & Net Profit of ₹314.30 Cr in FY2022 & Net Sales / Revenue   of ₹2279.70Cr & Net Profit of ₹649.20Cr in FY2023  and  Net Sales / Revenue   of ₹1897.40 Cr & Net Profit of ₹810.30 Cr in FY2024 .

The company will Reduce its Net Debt from ₹3839.90 Cr in FY2021 to ₹2982.40 Cr in by FY2024. EPS will improve from -7.48 to 33.20; Free Cash Flow from -₹799.50 to -₹187.30; ROA from -1.44% to 5.09%; Book Value per Share from ₹299.00 to ₹369 during the same period.

Latest Development: 1.The company has rejigged its Mumbai management team and brought in a new chief executive. 2. It plans to launch mid-income housing and a fair amount of premium housing in Mumbai. 3.The company has 27 projects in Mumbai with a development potential of 38 million square feet and nine projects with 16 million sq ft under construction. The company hopes to go to market with at least 4-5 launches in the near future 4.The company to create an REIT (real estate investment trust) to other such structure where Godrej will have a minority stake

Valuations  : The Company is now Trading at X 8.59 of its  valuations of  FY2022 earnings with ~759% Premium and X4.13 of its FY2023 earnings with ~313% Premium & X3.31 of its FY2024 earnings with ~231%  Premium.

The  Equity Value Per Share ( Enterprise Value Method ) is  1522

If We factor its FY2024 earnings/valuations, its Price arrives at 3944.

Disclaimer : We are / may going to take exposure shortly.

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