NSEI:GODREJPROP

Stock Analysis Report

Executive Summary

Godrej Properties Limited, together with its subsidiaries, primarily engages in the real estate construction, development, and other related activities in India and Singapore.

Rewards

Earnings are forecast to grow 7.8% per year

Earnings grew by 258.8% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

How has Godrej Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GODREJPROP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

GODREJPROP

-4.5%

IN Real Estate

-1.5%

IN Market


1 Year Return

57.4%

GODREJPROP

24.9%

IN Real Estate

10.7%

IN Market

Return vs Industry: GODREJPROP exceeded the Indian Real Estate industry which returned 28.5% over the past year.

Return vs Market: GODREJPROP exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

GODREJPROPIndustryMarket
7 Day-3.3%-4.5%-1.5%
30 Day12.7%-7.0%-2.7%
90 Day29.3%8.7%1.3%
1 Year57.4%57.4%25.8%24.9%12.7%10.7%
3 Year212.9%212.9%53.9%50.7%22.0%15.1%
5 Year272.0%269.3%46.6%40.9%34.5%22.0%

Price Volatility Vs. Market

How volatile is Godrej Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Godrej Properties undervalued compared to its fair value and its price relative to the market?

83.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GODREJPROP (₹1113) is trading above our estimate of fair value (₹482.21)

Significantly Below Fair Value: GODREJPROP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GODREJPROP is poor value based on its PE Ratio (83.1x) compared to the Real Estate industry average (12.8x).

PE vs Market: GODREJPROP is poor value based on its PE Ratio (83.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: GODREJPROP is poor value based on its PEG Ratio (10.7x)


Price to Book Ratio

PB vs Industry: GODREJPROP is overvalued based on its PB Ratio (6x) compared to the IN Real Estate industry average (0.7x).


Next Steps

Future Growth

How is Godrej Properties forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GODREJPROP's forecast earnings growth (7.8% per year) is above the savings rate (6.5%).

Earnings vs Market: GODREJPROP's earnings (7.8% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: GODREJPROP's earnings are forecast to grow, but not significantly.

Revenue vs Market: GODREJPROP's revenue is expected to decline over the next 3 years (-8.1% per year).

High Growth Revenue: GODREJPROP's revenue is forecast to decline over the next 3 years (-8.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GODREJPROP's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Godrej Properties performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GODREJPROP has a large one-off gain of ₹1.6B impacting its December 31 2019 financial results.

Growing Profit Margin: GODREJPROP's current net profit margins (12.3%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: GODREJPROP's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: GODREJPROP's earnings growth over the past year (258.8%) exceeds its 5-year average (4.7% per year).

Earnings vs Industry: GODREJPROP earnings growth over the past year (258.8%) exceeded the Real Estate industry -2.8%.


Return on Equity

High ROE: GODREJPROP's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Godrej Properties's financial position?


Financial Position Analysis

Short Term Liabilities: GODREJPROP's short term assets (₹79.6B) exceed its short term liabilities (₹58.1B).

Long Term Liabilities: GODREJPROP's short term assets (₹79.6B) exceed its long term liabilities (₹166.6M).


Debt to Equity History and Analysis

Debt Level: GODREJPROP's debt to equity ratio (77.8%) is considered high.

Reducing Debt: GODREJPROP's debt to equity ratio has reduced from 145.4% to 77.8% over the past 5 years.

Debt Coverage: GODREJPROP's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: GODREJPROP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GODREJPROP has a high level of physical assets or inventory.

Debt Coverage by Assets: GODREJPROP's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Godrej Properties's current dividend yield, its reliability and sustainability?

0.004%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage0.8%forecastin3Years0.004%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GODREJPROP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GODREJPROP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GODREJPROP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GODREJPROP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GODREJPROP is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GODREJPROP's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.9yrs

Average board tenure


CEO

Mohit Malhotra (40yo)

2.8yrs

Tenure

₹135,931,663

Compensation

Mr. Mohit Malhotra has been Chief Executive Officer and Managing Director of Godrej Properties Limited since April 1, 2017. Mr. Malhotra served as Executive Vice President of Business Development and Vice  ...


CEO Compensation Analysis

Compensation vs Market: Mohit's total compensation ($USD1.91M) is above average for companies of similar size in the Indian market ($USD706.16K).

Compensation vs Earnings: Mohit's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Pirojsha Godrej
Executive Chairman2.8yrs₹141.17mno data
Mohit Malhotra
MD, CEO & Director2.8yrs₹135.93m0.011% 31.0m
Lalita Gupte
Independent Director12.1yrs₹2.20m0.0056% 15.9m
Keki Dadiseth
Independent Director12.1yrs₹1.90mno data
Adi Godrej
Chairman Emeritus2.8yrs₹1.05m0.000010% 28.5k
Nadir Godrej
Non-Executive Director29.8yrs₹1.40mno data
Jamshyd Godrej
Non-Executive Director29.8yrs₹1.30m0.000020% 57.1k
Amitava Mukherjee
Independent Director9.8yrs₹2.20m0.0013% 3.6m
Pranay Vakil
Independent Director12.1yrs₹2.20m0.00012% 342.5k
Sutapa Banerjee
Additional Non-Executive & Independent Director0.3yrsno datano data

10.9yrs

Average Tenure

69yo

Average Age

Experienced Board: GODREJPROP's board of directors are seasoned and experienced ( 10.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.


Top Shareholders

Company Information

Godrej Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Godrej Properties Limited
  • Ticker: GODREJPROP
  • Exchange: NSEI
  • Founded: 1985
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: ₹285.442b
  • Shares outstanding: 252.02m
  • Website: https://www.godrejproperties.com

Number of Employees


Location

  • Godrej Properties Limited
  • Godrej One
  • Unit No. 5C, 5th Floor
  • Mumbai
  • Maharashtra
  • 400079
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GODREJPROPNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2010
533150BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2010

Biography

Godrej Properties Limited, together with its subsidiaries, primarily engages in the real estate construction, development, and other related activities in India and Singapore. It develops residential, commercial, and township projects across approximately 143.48 million square feet of estimated saleable area in 11 cities. The company was incorporated in 1985 and is based in Mumbai, India. Godrej Properties Limited is a subsidiary of Godrej Industries Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:02
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.