Our 30th company in the Series of Best Stocks to Buy in India for Long term 2023 is Godrej Properties Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Godrej Properties Limited is a real estate company engaged in construction and real estate development.
Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹32,637 cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 92.62
Sector PE Ratio: 46.44
PE Ratio of this company is high than Sector’s PE. So it’s a Below Average PE than the peers of this company.
PB Ratio : 3.76
Sector PB Ratio : 2.31
PB Ratio of this company is high than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.11%
Sector Dividend Yield : 1.43%
Dividend of this company is low than Sector’s dividend. So it’s Below Average PB than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Average.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022 , Company have 9,129.99Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: GODREJPROP’s net debt to equity ratio (16%) is considered satisfactory.
Reducing Debt: GODREJPROP’s debt to equity ratio has reduced from 191% to 61.3% over the past 5 years.
Debt Coverage: GODREJPROP’s operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: GODREJPROP earns more interest than it pays, so coverage of interest payments is not a concern.
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotors holding which is 58.48% in June 2021. FIIs invested in June 2022 with 27.41% and retail investor is 9.55%.
Investment Checklist for Godrej Properties Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 30.8% per year for the next 3 years
- Debt level is low and not considered a risk
- They do not pay a dividend
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or GODREJPROP became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹20B)
- Market cap is meaningful (₹326B)
- GODREJPROP does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Entry Buying Zone : 1100 to 1200
Target: 1700 (40% Upside)
Time Horizon: 1 Year
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
Hope you liked Our 30th company in the Series of Best stocks to buy in India for Long term 2023. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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