On Thursday, Jefferies maintained a Buy rating on Godrej Properties Ltd (GPL:IN) stock and increased the price target to INR 3,725 from INR 3,175. The firm's analyst cited the company's record 9.0 million square feet of sales in the first quarter as a key factor for the revised target, positioning Godrej Properties for a potential beat on its annual guidance. With 33% of the year's sales target already achieved and a robust launch pipeline in place, the analyst believes the company is well-poised for growth.
The improved operating cash flow performance, attributed to a more than 50% year-over-year increase in customer collections, was also highlighted as a positive indicator. The management's expectation of surpassing its cash flow targets further bolsters this outlook. Despite the volatility in the reported profit and loss, the underlying margin trajectory for Godrej Properties is on an upward trend, suggesting a strengthening financial position.
Godrej Properties is currently trading at approximately 21 times the price-to-earnings ratio for the fiscal year 2025 pre-sales. The analyst expects these multiples to sustain, reinforcing the rationale behind the Buy rating. The new price target of INR 3,725 reflects confidence in the company's ability to maintain its growth momentum and financial health.
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