HSBC and Jefferies Raise Target Prices on Godrej Properties, Citing Strong FY27 Pre-Sales Guidance and ROE Visibility

Analyst Upgrades Signal Confidence in Godrej Properties Growth Path

Major global brokerages HSBC Global Investment Banking and Jefferies have reiterated their Buy ratings on Godrej Properties Ltd while raising target prices, citing strong growth visibility and a robust pre-sales outlook.

HSBC Raises Target to ₹2,900

HSBC Global maintained its Buy call and raised the target price to Rs 2,900 from Rs 2,800 earlier. This implies a potential upside of 52.6 per cent from the assessed price of Rs 1,899.80.

HSBC Global highlighted the company's consistent scale-up and confident guidance despite a challenging macro environment, stating that strong guidance in uncertain environment reflects Godrej's launch plan, its substantial business development in past years, and a demand environment without material disruption.

FY26 Pre-Sales Growth Demonstrates Scale

FY26 pre-sales of Rs 34,200 crore, up 16 per cent YoY, following 56 per cent, 84 per cent, and 31 per cent YoY pre-sales growth over FY23, FY24, and FY25 respectively demonstrates a rapid scale-up in business.

Jefferies Maintains Buy, Points to ROE Visibility

Jefferies also retained a Buy rating, pointing to improving financial metrics and strong medium-term growth drivers. Godrej Properties expects pre-sales and cash collections to grow by 14 per cent/20 per cent in FY27, on a large base, with a jump in construction spends during FY26 and high quality of pre-sales expected to drive a 20 per cent reported ROE and FCF turnaround by FY28.

Confidence Signals from Management and Promoters

As a precursor, management announced a dividend after a decade and recently promoters bought a 5 per cent stake in the stock. Jefferies stated: We believe sustained financial parameter delivery can drive significant rerating.

Valuations and Earnings Trajectory

The stock is trading at 11x PE on reportable PAT/embedded PAT in FY28 P&L/FY26 pre-sales estimates. Both brokerages see room for rerating driven by earnings delivery and return on equity improvements over the next 12-24 months.

About Godrej Properties

Godrej Properties Limited operates across major Indian cities, including Mumbai, Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata, with a development portfolio of more than 250 million sq. ft., covering luxury residential projects, office spaces, retail hubs, and integrated townships.