Godrej Properties - Re-capitalized for growth - Kotak

In the past eight quarters, Godrej has been successful in adding new projects with low investments. Residential-only focus and concentration in high-value markets are increasing. But recent stake buyback in certain projects and slow commercial portfolio (legacy) have resulted in increase in debt in 1HFY14 by Rs. 5 bn to about Rs. 22 bn. However, being well-capitalized from the recent rights issue and change in strategy playing through well, we find Godrej to be well-placed for strong growth ahead.

We retain our ADD rating with a March-2015 target price of Rs. 180.

Source : Equity Bulls

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