Godrej Properties saw its shares dip 2% in morning trade after Nomura began coverage with a “reduce” rating and set a target price of ₹1,900—implying a potential 17.6% downside from the previous close of ₹2,308.
Nomura raised concerns over the real estate developer’s pre-sales momentum, which it expects to be weaker than anticipated. It also flagged that Godrej’s current valuation—trading at a 135% premium to its net asset value (NAV)—is significantly higher compared to peers like Macrotech.
The brokerage expects pre-sales of ₹31,000 crore for FY26, falling short of the company’s ₹32,500 crore guidance, citing muted response from new project launches and a fading buyer sentiment in the real estate space. In contrast, competitors like Macrotech and Prestige have given much stronger pre-sales growth guidance of 20% and 50%, respectively.
Nomura added that Godrej’s medium-term pre-sales growth may fall below its aspirational 20% CAGR due to limited new business development. It also warned of risks linked to the company’s volume-led strategy, which could lead to equity dilution and execution hurdles.
However, the brokerage noted a few potential upside triggers, such as stronger-than-expected response to new launches or quicker-than-planned project rollouts. But for now, execution remains a key concern.
Godrej Properties stock opened at ₹2,279.90 and touched a high of ₹2,283.00 during the session. However, it slipped to a low of ₹2,245.30. The stock remains significantly below its 52-week high of ₹3,402.70 and is trading closer to its 52-week low of ₹1,900.00.
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