Godrej Properties Limited (GPL) shares experienced a sharp decline of over 2% following the release of its Q4FY26 results, despite maintaining strong analyst support. According to latest market reports, the stock correction came after an extended rally period, with investors taking profits following the company's exceptional quarterly performance. However, brokerages continue to maintain their bullish stance on the stock, citing the company's robust fundamentals and growth prospects across different real estate segments.
Jefferies has issued a 'Buy' rating on Godrej Properties Limited (GPL) with a target price of ₹2,475, representing a 12.0x embedded PAT multiple to March 2028 pre-sales. According to the latest Jefferies research report dated May 05, 2026, the recommendation is based on the company's strong Q4FY26 performance and robust growth prospects. The current market price stands at ₹1,809.50, indicating significant upside potential from the target price.
GPL delivered an exceptional performance in Q4FY26, with net profit (pre-ex) reaching ₹650 crore, over 70% year-on-year growth. The company achieved a record revenue of ₹3,460 crore, representing a 63% jump year-on-year. As reported by Jefferies, the strong performance was driven by significant uptick in deliveries with GPL completing 7.4 million sq ft projects during the quarter, taking FY26 deliveries to 12.1 million sq ft, above 10 million sq ft guidance. The company's PAT over 32% in FY26 and 95% of large land/project expenditure internally funded demonstrate strong financial discipline.
The management has provided optimistic guidance for FY27E, targeting 14% rise in pre-sales to ₹39,000 crore. According to Jefferies, GPL plans to launch ₹48,000 crore worth of projects in FY27E (vs ₹42,200 crore in FY26), which should help drive pre-sales momentum significantly. The company has set an ambitious target to scale up deliveries by FY28 to over 20 million sq ft, with management focusing on large pre-sales in base and rising customer collections. While the outlook on broader property markets remains at mid-cycle growth levels, the company's guidance is subject to geopolitical situations not deteriorating further.
Jefferies maintains its 'Buy' rating on GPL based on the company's strong fundamentals and growth trajectory. The brokerage's target price of ₹2,475 reflects the company's comprehensive business portfolio and growth prospects across different real estate segments. The valuation methodology factors in ongoing and upcoming owned/JV projects, DM & commercial project pipeline and its land bank. With the stock currently trading at 11x PE on reportable PAT/embedded PAT in FY28 P&L/FY26 pre-sales estimates, Jefferies believes the 20% reported ROE target and net FCF positive are possible by FY28, supported by the company's focus on scaling up deliveries and improving operational efficiency.
