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Godrej Properties (BOM:533150) Financial Strength : 3 (As of Mar. 2025)


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What is Godrej Properties Financial Strength?

Godrej Properties has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Godrej Properties Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Godrej Properties's Interest Coverage for the quarter that ended in Mar. 2025 was 1.93. Godrej Properties's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.49. As of today, Godrej Properties's Altman Z-Score is 1.55.


Competitive Comparison of Godrej Properties's Financial Strength

For the Real Estate - Development subindustry, Godrej Properties's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Godrej Properties's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Godrej Properties's Financial Strength distribution charts can be found below:

* The bar in red indicates where Godrej Properties's Financial Strength falls into.


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Godrej Properties Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Godrej Properties's Interest Expense for the months ended in Mar. 2025 was ₹-460 Mil. Its Operating Income for the months ended in Mar. 2025 was ₹889 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ₹40,678 Mil.

Godrej Properties's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*888.9/-459.8
=1.93

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Godrej Properties's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(85735.6 + 40678.4) / 84869.2
=1.49

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Godrej Properties has a Z-score of 1.55, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.55 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Godrej Properties  (BOM:533150) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Godrej Properties has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Godrej Properties Financial Strength Related Terms

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Godrej Properties Business Description

Traded in Other Exchanges
Address
Eastern Express Highway, Godrej One, 5th Floor, Pirojshanagar, Vikhroli (East), Mumbai, MH, IND, 400079
Godrej Properties Ltd develops residential, commercial, and township properties in multiple cities. The company derives a majority of its revenue from the sale of properties. Other operating sources of revenue include the sale of services, compensation received from projects, and lease rents. The company's operations occur in two main business areas Residential Real Estate and Commercial Real Estate. The company takes on projects in each of these segments. Some of the company's Residential Real Estate projects include Godrej Garden City, Godrej Prakriti, and Godrej Palm Grove. The company's key Commercial Real Estate projects include Godrej BKC and Godrej Eternia. The company generates a majority of its revenue from India.

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