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Investing.com - Nomura/Instinet initiated coverage on Godrej Properties (NSE:GODR) Ltd (NSE:GPL) with a Reduce rating and a price target of INR1,900.00 on Wednesday.
The research firm expects Godrej Properties to miss its fiscal year 2026 presales guidance by 5% due to weaker-than-expected sales from new launches amid fading buyer exuberance in India’s real estate market.
Nomura/Instinet also expressed concern that pre-sales growth in the medium term could fall short of the company’s aspirational 20% CAGR goal, citing new business development trends that "do not inspire confidence" in Godrej’s ability to scale up new launches.
The firm identified additional risks to Godrej’s volume-driven growth strategy, including potential equity dilution and execution challenges where property deliveries are not keeping pace with sales growth.
Nomura/Instinet noted that Godrej Properties’ current valuation represents approximately a 135% premium to NAV, which it considers expensive compared to mass market peers like Macrotech, especially given Godrej’s lower pre-sales growth guidance of 10% year-over-year for FY26 versus competitors’ higher targets.
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