Motilal Oswal reiterates 'Buy' on Godrej Properties with ₹2,280 target, citing 38% CAGR in presales over five years
Analyst Reiterates Buy on Godrej Properties with ₹2,280 Target
Motilal Oswal Financial Services has reiterated a Buy recommendation on Godrej Properties, citing a 38% CAGR in presales to ₹342 billion over the five-year period FY21–26, which has positioned the company as the largest developer by presales. The brokerage set a sum-of-the-parts (SoTP) based target price of ₹2,280 per share.
Market Leadership and Expansion
Godrej Properties' market share in the top 8 cities expanded 174 basis points to 4.4% during FY21–26. The company retained its position as the largest listed realty firm in terms of sales bookings in FY26, with sales bookings rising to ₹34,171 crore from ₹29,444 crore in the preceding year.
The ramp-up in business development activity, with the addition of 210 million square feet over the past decade, has driven a 7x scale-up in presales to ₹342 billion in FY26 from approximately ₹50 billion in FY16.
Growth Outlook and Collections Momentum
Motilal Oswal expects presales to grow at a 10% CAGR to approximately ₹413 billion over FY26–28. Annual collections have grown from ₹44 billion in FY21 to ₹200 billion in FY26, translating to a 35% CAGR, with the brokerage forecasting a 17% CAGR in collections to ₹274 billion by FY28.
Project Pipeline and Diversification
The company has built a robust launch pipeline over the next two years following strong project additions in the past five years. In FY26, Godrej Properties added 18 new projects with an estimated saleable area of approximately 33 million square feet, offering ₹421 billion sales potential—over 2x guidance. These include ₹386 billion in Group Housing and ₹35 billion in Plotted Developments. Beyond larger cities, the company has expanded into Nagpur (₹7.5 billion), Coimbatore (₹4.5 billion), Raipur (₹3.8 billion), and Vadodara (₹2.8 billion).
Developer Background
Godrej Properties was established in 1990 as the real estate development arm of the Godrej Group, an Indian conglomerate founded in 1897. Headquartered in Mumbai, the company is listed on both the BSE and NSE following its 2010 initial public offering, which raised approximately USD 100 million. Since 2012, it has been led by Executive Chairman Pirojsha Adi Godrej, with Gaurav Pandey serving as Managing Director and CEO.
Godrej Properties operates across 12 Indian cities, with concentrated activity in Mumbai Metropolitan Region, National Capital Region, Pune and Bengaluru, and expansion extending to Hyderabad, Chennai, Kolkata, Ahmedabad, Nagpur and Kochi.
Brokerage Rationale
Despite an increase in net debt in FY26, leverage remains at a comfortable level. Considering industry tailwinds and strong project additions in the past five years, the company has built a robust launch pipeline that will support further scale-up.