Signatureglobal, Sobha, Lodha, Godrej Properties: Targets for 4 real estate stocks

A couple of brokerages have come out with notes on real estate companies such as Signatureglobal, Sobha, Macrotech Developers Ltd (Lodha) and Godrej Properties. Here are their expectations on the FY26 performance and target prices. 

Godrej Properties target: Rs 1,900
Nomura initiated coverage of Godrej Properties with a 'Reduce' rating, given that it expects FY26F presales to miss guidance by 5 per cent on weaker-than-expected sales from new launches amid fading exuberance among buyers in India’s real estate market. 

It said pre-sales growth in the medium term could be slower than its aspirational goal of 20 per cent CAGR, as new business development (BD) trends do not inspire confidence in GPL’s ability to sharply scale up new launches. 

GPL’s volume-driven growth strategy is faced with risks in the form of further equity dilution, and challenges in execution where deliveries are not ramping up as fast as its sales are, Nomura said.

It cited expensive valuation at 135 per cent premium to NAV, which is much higher than mass market peers such as Macrotech, while GPL’s pre-sales growth guidance of 10 per cent YoY for FY26F is lower than Macrotech and Prestige’s 20 per cent YoY and 50 per cent YoY, respectively 

Signatureglobal target price: Rs 1,456
The real estate company logged pre-sales of Rs 2,640 crore in Q1FY26, down 15 per cent YoY or up 63 per cent QoQ). Collections during the quarter fell 23 per cent YoY or 21 per cent QoQ to Rs 930 crore. Average realisations were Rs 16,296/sft, up 6 per cent YoY) while average ticket size at Rs 3.4 crore was up 5 per cent YoY, Nuvama said. Net debt inched up as SGIL acquired 10 acres of land in Sohna with sales potential of 0.53msf. 

"The company has maintained its FY26E guidance of Rs 12,500 crore pre-sales and Rs 6,000 crore collections. As highlighted in our report SGIL: Emerging heavyweight, SGIL’s successful transition to the premium housing segment is likely to keep sales momentum healthy going ahead. Retain ‘BUY’ with an unchanged target of Rs 1,456," Nuvama said.

Macrotech Developers target price: Rs 1,870
MOFSL said Lodha's presales are expected to clock a 20 per cent CAGR, led by healthy collections and a comfortable debt level of 0.2 time, as of 4QFY25 end. The company entered Pune and is scaling up at a healthy pace. Additionally, it has completed its pilot phase in Bengaluru and started scaling up with the acquisition of a 5.6msf project with a GDV of Rs 6,600 crore in FY25. 

"Further, LODHA is expanding its commercial and industrial portfolios to garner strong rentals. We believe the company’s ability to acquire projects at a constant pace is commendable and provides strong growth visibility, along with timely execution. We reiterate our BUY rating with a revised target price of Rs 1,870, which implies a 36% potential upside," MOFSL said. 

Sobha target price: Rs 1,784
Nuvama maintained ‘Buy’ on Sobha with a revised target of Rs 1,784 against Rs 1,708 earlier, as it rolled forward the valuation to Q1FY28E. Sobha’s Q1FY26 overall pre-sales stood at Rs 2,080 crore, up 11 per cent YoY or 13 per cent QoQ)—its highest-ever quarterly pre-sales. The share of bookings shot up 26 per cent YoY to Rs 1,720 crore. 

"Bengaluru’s share in sales (by area) decreased to 32 per cent during the quarter and was overtaken by NCR with a 49 per cent share following the company’s foray into the Greater Noida market. Realisation fell 10 per cent YoY to at Rs 14,395/sft in Q1FY26," Nuvama said.

The company launched two projects spanning ~1.6msf in Q1FY26. Geographical expansion should aid sales momentum, though softness in housing sales volumes remains a concern, Nuvama said.