Godrej Properties Limited

Real Estate — Real Estate - Development · NSE

₹1,603.30−₹13.60 (−0.84%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, negative free cash flow, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Godrej Properties Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Godrej Properties Limited, together with its subsidiaries, engages primarily in the business of real estate construction, development, hospitality, and other related activities in India. It develops residential and commercial projects.

IndustryReal Estate - Development

SectorReal Estate

Employees5,124

Annual revenue₹5,026 Cr

How does it make money?

Turns over ₹5,026 Cr a year. Of every ₹100 of sales, about ₹37 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 5,124 employees supports ₹98.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin5.1%

Net margin36.8%

Revenue / employee₹98.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

DLF LIMITEDP/E 36.6x · ROE 10.3%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Little sign of one

Returns on capital of 11.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.1%

ROE9.7%

Peer median ROE14.7%

What is the outlook?

16 analysts covering the stock expect revenue to grow about 72.7% and earnings to grow about 49.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+72.7%

Est. earnings growth+49.8%

Analysts16

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +132% while net margin moved +40% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+132%

Margin effect+40%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• Debt/Equity of 0.82x is manageable
• Current ratio of 1.27 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Debt has grown 35.2% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

64/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

30.2x

3Y Median

80.8x

40 monthly readings · mean 76.5x · range 26.1x–156.7x

Sector Median

30.1x

median of 2 sector peers

🟢Current valuation is approximately 63% below its 3y median of 80.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 30.1x.

vs. its own history

Cheap

80.8x median over 40 months · -63%

vs. sector peers

Fair

30.1x median of 2 peers · +0%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

30.2x

P/B

2.52x

EV/EBITDA

244.2x

PEG

0.63

Dividend Yield

0.62%

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 6.2% to 9.7%.
Valuation below its historical average
At 30.2x the stock trades 63% below its own median of 80.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 34.7% to 5.1% over 3 years.
Debt is rising
Total debt is up 147% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 379% against revenue growth of 132% — stock may not be moving.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 147% over 3 years, from ₹6,431 Cr to ₹15,894 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 29.6 points, from 34.7% to 5.1%.
🔴Inventory building faster than salesFinancial
Inventory up 379% against revenue up 132% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 63% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.7% to 5.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 62.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 24% a year✓ 32.4% CAGR
Latest reported year was 16.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 62.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹2,409 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 11.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹48,296 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

30.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹53.13

Profitable

Profitable on a per-share basis

ROE

9.7%

Moderate

Moderate capital efficiency

ROCE

11.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

16.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-41.7%

Falling

Profits are shrinking

Dividend Yield

0.62%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹2,409 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,603.3

P/E (Forward)

14.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

-62.3%

Weak

Thin margins leave little room for error

Net Margin

30.8%

Good

Strong bottom-line conversion

Current Ratio

1.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1625.0 / 1828.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,166 Cr	₹2,921 Cr	₹4,799 Cr	₹5,026 Cr	+32.4%
EBITDA	₹752 Cr	₹299 Cr	₹523 Cr	₹255 Cr	-30.2%
EBITDA Margin	34.7%	10.2%	10.9%	5.1%	—
PAT (Net Profit)	₹571 Cr	₹725 Cr	₹1,400 Cr	₹1,850 Cr	+47.9%
EPS	₹20.55	₹26.08	₹49.01	₹61.42	+44.0%
ROE	6.2%	7.3%	8.1%	9.7%	—
ROCE	9.3%	6.8%	7.9%	11.1%	—
Total Debt	₹6,431 Cr	₹10,679 Cr	₹12,641 Cr	₹15,894 Cr	+35.2%
Free Cash Flow	-₹3,166 Cr	-₹1,388 Cr	-₹2,454 Cr	-₹2,409 Cr	—

🟢 Revenue has grown at 32.4% a year over 3 years.

🔴 EBITDA has shrunk at 30.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.7% to 5.1% over 3 years (-29.6 pts).

🟢 PAT (Net Profit) has grown at 47.9% a year over 3 years.

🟢 EPS has grown at 44.0% a year over 3 years.

🟢 ROE has risen from 6.2% to 9.7% over 3 years (+3.5 pts).

🟢 ROCE has risen from 9.3% to 11.1% over 3 years (+1.8 pts).

🔴 Total Debt has grown at 35.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹81,894 Cr

Total Liabilities

₹62,540 Cr

Total Debt

₹15,894 Cr

Cash & Equivalents

₹1,861 Cr

Operating Cash Flow

-₹2,003 Cr

Capex

-₹406 Cr

Shareholding (proxy)

Institutional Holding

24.4%

Insider Holding

57.6%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹10

Ex-Dividend Date

28 Jul 2026

Analyst Consensus

Recommendations

14 Buy · 6 Hold · 2 Sell

Target Price (Mean)

₹2,336.68

+45.7% vs CMP

Target Range

₹1,525 – ₹3,000

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

4 mixed1 negative1 general

GODREJPROP Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Revenue Miss: Godrej Properties Limited Fell 52% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Simply Wall Street, 07 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Godrej Properties (GODREJPROP) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Godrej Properties share price falls 7%: What triggered the sudden sell-off in trade today?

Livemint, 11 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Godrej Properties Share Price Falls 2.02%: Valuation View

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Godrej Properties schedules Q2FY27 results call for Oct 23

scanx.trade, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.7/20

🟡Financial HealthAdequate9.3/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10/15

🟡ValuationFair9.5/15

🟡RiskModerate5.8/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 24% a year32.4% CAGR
✓EBITDA margin holds above 3%5.1%
✗Debt / EBITDA falls below 3x62.3x
✗Free cash flow remains positive-₹2,409 Cr
✓ROCE stays above 8%11.1%