Acquisitions, launch pipeline offer Godrej Properties revenue visibility

Muted near term cash flows, increase in debt and valuations to cap upside

Godrej Properties has been a key beneficiary of the rebound in residential demand over the past few quarters and the consolidation in the sector. Its strong brand name and execution track record has helped it rapidly scale up its presence in each of its four key markets of Mumbai region, Pune, National Capital Region and Bengaluru. 

Analysts believe branded developers in key residential markets will continue to gain market share as demand remains healthy, led by lower home loan rates, stamp duty reduction, discounts and pent-up demand. Manish Agrawal of JM Financial says the consolidation theme is getting accelerated and