UBS rates Godrej Properties a ‘sell'

Updated : March 22, 2021 12:09 PM IST

The brokerage stated that expected profit from new projects will be reflected beyond the 2025 fiscal

UBS also lowered the FY21-23e EPS By 9 percent

Brokerage firm UBS has rated Godrej Properties a 'sell', and trimmed the company's earnings per share estimates between FY2021 and FY2023 by 9 percent following the increase in equity capital. UBS has set a price target of Rs 905 for the stock.

The brokerage note also states that expected revenue/profit recognition from new projects will be reflected only after FY25.

Last week, Godrej Properties raised Rs 3,750 crore through a sale of shares to institutional investors to expand its business and support future growth. The capital raising was done through the qualified institutional placement (QIP) route, and Godrej Properties said this was the largest QIP by a real estate firm in India.

Godrej Properties has also bought around 1.5-acre land parcels for Rs 166 crore in Mumbai to develop a residential project. Pirojsha Godrej, the executive chairman of Godrej Properties, said that the project would strengthen the company’s development portfolio further in the Mumbai Metropolitan Region.

Published : March 22, 2021 12:09 PM IST

UBS rates Godrej Properties a ‘sell'

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