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Check Before You Invest : Godrej Properties Ltd

BSE: 533150 NSE: GODREJPROP ISIN: INE484J01027
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Godrej Properties Ltd belong to?
Godrej Properties Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Godrej Properties Ltd a good quality company?
Godrej Properties Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Godrej Properties Ltd undervalued or overvalued?
Godrej Properties Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 149.82 76.01
Price to Book 2.94 4.32
Price to Sales 37.45 39.72
EV to EBITDA 56.65 52.37
Q.4 Is Godrej Properties Ltd a good buy now?
Godrej Properties Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Godrej Properties Ltd?
Godrej Properties Ltd revenue growth is 46.5% for FY-2025, which is above its 5-year CAGR of -1.34%, indicating faster growth.

Q.2 Gross Profit margin of Godrej Properties Ltd?
Godrej Properties Ltd Gross profit margin which is the profit after deduction of direct costs, is 66.8% for FY-2025, which is above its 5-year median of 55.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Godrej Properties Ltd?
Godrej Properties Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -16.35% for FY-2025, which is below its 5-year median of -4.88% indicating decreasing margins.

Q.4 Net Profit Margin of Godrej Properties Ltd?
Godrej Properties Ltd Net Profit Margin is 51.86% for FY-2025, is above its 5-year median of 42.41%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 66.8 55.5
Operating Profit Margin (%) -16.35 -4.88
Net Profit Margin (%) 51.86 42.41

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Godrej Properties Ltd?
Godrej Properties Ltd Return on Asset is 2.82%, which is in line with its 5-year historical median of 2.82%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Godrej Properties Ltd?
Godrej Properties Ltd Return on capital employed is 7.37% for FY-2025, which is above its 5-year historical median of 6.76%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of Godrej Properties Ltd?
Godrej Properties Ltd Return on equity is 7.24% for FY-2025, which is above its 5-year historical median of 5.83%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Godrej Properties Ltd?
Godrej Properties Ltd Cash conversion cycle is 2059 days, above its 5-year historical median of 1198 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.05 0.06
ROE (%) 7.24 5.83
ROCE (%) 7.37 6.76
Cash Conversion Cycle 2059 days 1198 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Godrej Properties Ltd?
Godrej Properties Ltd Debt-to-Equity ratio is 0.67, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Godrej Properties Ltd?
Godrej Properties Ltd Debt to cash flow from operations is -6.68, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Godrej Properties Ltd?

Q.1 Promoter shareholding and pledge status of Godrej Properties Ltd?
Promoters hold 51.66% of the Godrej Properties Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Godrej Properties Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Godrej Properties Ltd vs industry peers?
Godrej Properties Ltd revenue CAGR is -1.34%, compared to the industry median CAGR of 9.33%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 46.5 9.3
Gross Profit Growth (%) 76.2 17
Operating Profit Growth (%) 0 15.4
Net Profit Growth (%) 79.3 29.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.05 0.19
ROE (%) 7.24 8.18
ROCE (%) 7.37 8.96
Cash Conversion Cycle (days) 2059.39 664

Valuation & price assessment

Q.1 Stock return of Godrej Properties Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18% 5.8% 8.7% -20.4%
Q.2 Valuation ratios of Godrej Properties Ltd vs historical?
The current P/E ratio of 149.82 is higher than its historical median of 76.01, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 149.82 76.01 33.43
Price to Book 2.94 4.32 1.53
Price to Sales 37.45 39.72 5.23
EV to EBITDA 56.65 52.37 14.43

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