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On 31 March 2019, Godrej Properties Limited (NSE:GODREJPROP) announced its earnings update. Overall, analysts seem fairly confident, with earnings expected to grow by 46% in the upcoming year compared with the past 5-year average growth rate of 4.3%. Currently with trailing-twelve-month earnings of ₹2.5b, we can expect this to reach ₹3.7b by 2020. Below is a brief commentary on the longer term outlook the market has for Godrej Properties. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Godrej Properties
Exciting times ahead?
The longer term view from the 15 analysts covering GODREJPROP is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for GODREJPROP, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, GODREJPROP's earnings should reach ₹5.7b, from current levels of ₹2.5b, resulting in an annual growth rate of 27%. EPS reaches ₹22.95 in the final year of forecast compared to the current ₹11.16 EPS today. In 2022, GODREJPROP's profit margin will have expanded from 9.0% to 28%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Godrej Properties, there are three key factors you should look at:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is Godrej Properties worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Godrej Properties is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Godrej Properties? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.