Godrej Properties - Going @ High Speed, :: Emkay

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Godrej Properties

Going @ High Speed, Not Rated

NOT RATED

CMP: Rs 706                                       Target Price: NA

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n     GPL’s Q4 FY11 Operating Income grew by more than 43% yoy to Rs 3.3bn but high Cost of Sales and higher tax rate lead to 29% to Rs 0.96bn and PAT growth of 4% to Rs 0.6bn

n     Sales booking of 1.6 msf in Q4 FY11 and 3.2 msf in FY11. Launches of more than 5.3 msf will keep the sales momemtum in FY12

n     Gr. Debt at Rs 9.5bn, Net D/E ratio at 0.9x among the highest in listed RE players. Commercial property monestisation to tune of Rs 8.5bn over next 24 months to ease the debt burden

n     Stock trades at P/BV of 5.4x, much higher than its peers as high return ratio, strong business visibility and development potential for Godrej Group’s land bank is getting rewarded