Godrej Properties Stock Declines Over 2% Following Q4 Results, Brokerages Maintain Bullish Outlook

Godrej Properties Shares Decline After Strong Q4 Earnings

Godrej Properties Ltd shares experienced a decline of 2.5 percent in early trade on Tuesday, falling to Rs 1,852. This movement comes after the stock had closed 3.5 percent higher on the previous day, following a sharp post-results rally. The stock had surged over 6 percent intraday on Monday after the company reported strong Q4 earnings.

Despite the recent decline, the company's Q4 FY26 results were robust, with a 70 percent year-on-year rise in net profit to Rs 649 crore. Revenue grew 63 percent to Rs 3,458 crore, while operationally, EBITDA jumped sharply to Rs 523 crore from Rs 110 crore a year ago. EBITDA margins expanded to 15.1 percent from 5.2 percent, indicating a strong improvement in execution and operating leverage.

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Brokerages have largely maintained a positive stance on the stock, citing strong demand visibility and improving cash flows. CLSA has an outperform rating on Godrej Properties shares with a target price of Rs 2,600, while Jefferies has reiterated its buy call with a target price of Rs 2,475. HSBC remains the most bullish among the three, with a buy rating and a target price of Rs 2,900.

The brokerages are optimistic about the company's future prospects, with CLSA expecting around 14 percent pre-sales growth in FY27 despite a high base. Jefferies expects pre-sales growth of about 14 percent and collections growth of 20 percent in FY27, while HSBC expects pre-sales growth of about 14 percent and collections growth of around 20 percent. The brokerages believe that higher construction spending and a strong sales mix will support returns, with the return on equity seen reaching around 20 percent and free cash flow turning positive by FY28.