Godrej Properties at record low; Morgan Stanley cuts target

Written By Unknown on Kamis, 26 September 2013 | 16.02

Moneycontrol Bureau

Shares of Godrej Properties touched a record low of Rs 349.70 on Thursday. Morgan Stanley has equalweight rating on the stock and cut its target price to Rs 407 from Rs 535.

The brokerage house also cut its earnings per share estimates for FY14 and FY15 by 45 percent each, driven by slower-than-expected sales at the Ahmedabad and Commercial projects, delay in planned new launches and new revenue recognition guidelines.

"Godrej Properties continues to build its project portfolio through the partnership and acquisition route. The balance sheet should improve thanks to the recently concluded Rs 700 crore rights issue. However, the sluggish macro climate, gradual ramp-up, and full valuations keep us equalweight on the stock," Morgan Stanley in its report said.

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At 13:42 hours IST, the stock was down 1.85 percent to Rs 350.90 on the Bombay Stock Exchange. It lost more than 17 percent in past one month and 41 percent in nine months.

(Posted by Sunil Shankar Matkar)



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