Multibagger stock: Up over 100% in 1 year! What's next for this realty major?

From hovering around Rs 200 in 2014, Godrej Properties stock is now trading at around Rs 2,800 mark. The multibagger stock is up over 100 per cent in the last 12 months and has delivered over 250 per cent in the last 5 years. It hit an all-time high of Rs 2,836 on Monday after its stellar fourth-quarter earnings.

The company posted a 14 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 471 crore for the quarter ended March 2024. It has clocked the highest-ever quarterly sales for the third quarter in a row with a booking value of Rs 9,519 crore.

Godrej Properties said that it has achieved 161 per cent of booking value guidance for FY24 on the back of both an improving project mix as well a strong volume growth of 31 per cent. NCR was the largest contributor with Rs 10,016 crores followed by MMR contributing Rs 6,545 crores booking value in the financial year.

What's next?

Analysts from Jefferies, JP Morgan, and Motilal Oswal are bullish on the stock, with 'Buy' or 'Overweight' ratings and target prices ranging from Rs 3,000 to Rs 3,175. They highlight factors such as strong cash flow performance, exceeding FY24 guidance, and the company's ability to capitalize on market opportunities, especially in regions like NCR and MMR.

Jefferies has a 'Buy' call on the stock with a target price of Rs 3,175. It said the strong cash flow performance in Q4 drove the first net debt reduction in 22 quarters. Additionally, FY24 guidance has been well exceeded, it said.

JP Morgan has also upgraded the stock to 'Overweight' and the target has been raised to Rs 3,100 per share. Mumbai sales growth is an added positive as the company is finally capitalising on home market opportunity, it said.

Motilal Oswal has maintained its ‘buy’ rating with an increased target of Rs 3,000. "Given the healthy demand environment, management is confident of delivering consistent growth over the medium term,” it said.