JM Financial is expressing confidence in four prominent companies that they predict will yield significant returns. Their recommendations span various sectors, including job portals and real estate, with strong ‘BUY’ ratings for Info Edge, Godrej Properties, Sobha, and Keystone Realtors. The brokerage firm asserts that, despite facing industry-specific challenges, these companies have demonstrated robust performance and promising growth potential.

JM Financial’s Take on Godrej Properties

JM Financial’s enthusiasm for Godrej Properties remains unwavering, especially in light of its exceptional quarterly pre-sales performance. The company achieved a remarkable ₹102 billion in pre-sales during Q4 FY25, surpassing JM’s initial estimate of ₹98 billion.

• Sales Highlights: Over the fiscal year, Godrej Properties sold more than 15,300 homes, covering 25.7 million square feet.
• Annual Growth: Pre-sales increased by 31% year-on-year, reaching ₹294 billion, exceeding guidance by 9%.

The brokerage emphasized that new launches, such as Godrej Riverine in Noida and Godrej Astra in Gurugram, were instrumental in driving sales, each crossing the ₹10 billion threshold. This marks the eighth consecutive year of growth for the company, demonstrating its ability to thrive in a cyclical market.

Sobha Limited: A Strong Comeback

Turning to Sobha Limited, JM Financial highlights a notable recovery in Q4 FY25, where the company reported pre-sales of ₹18.4 billion, reflecting a 22% increase year-on-year and a 32% rise quarter-on-quarter. The city of Bengaluru remains Sobha’s strongest market, contributing 77% of total bookings, bolstered by the successful launch of Sobha Townpark.

• Overall Performance: Despite a 23% drop in overall volume for FY25, the decline in value was limited to just 6%, thanks to a 23% increase in realizations.
• Market Insights: “Sobha’s resurgence in Q4, driven by premium launches and improved pricing, signals a strong re-acceleration,” noted the report.

Info Edge: Sustained Growth Across Segments

JM Financial maintains a positive outlook on Info Edge (India) with a ‘BUY’ recommendation, although it has slightly adjusted the target price from ₹8,750 to ₹7,800. The brokerage cites impressive billing performance across major business segments, including Naukri, 99acres, Jeevansathi, and Shiksha during Q4 FY25.

• Key Figures: Standalone billings rose by 19% year-on-year, with the recruitment segment, Naukri, experiencing an 18.4% increase, marking its highest growth in ten quarters.
• Broad-Based Growth: “The growth trajectory is widespread across both IT and non-IT sectors, indicating a robust demand landscape,” the brokerage stated.

While future billing growth for Naukri has been moderated from 18% to 14.5% for FY26-27, JM Financial expects margin improvement driven by operational leverage as platforms like 99acres and Jeevansathi approach breakeven. The overall sentiment remains optimistic, as “Info Edge continues to show signs of durable demand,” reinforcing its status as a sound long-term investment.

Keystone Realtors: Strong Prospects Ahead

Lastly, JM Financial recommends a ‘BUY’ for Keystone Realtors, recognized for its Rustomjee brand, with a target price set at ₹855. Although Q4 FY25 pre-sales were modest at ₹8.5 billion, the company reported a 53% year-on-year increase in area sold, reflecting enhanced affordability and improved project absorption.

• Sales Performance: For FY25, Keystone achieved pre-sales of ₹30.3 billion, marking a 41% increase in volume.
• Future Outlook: The launches of Urban Woods in Dombivli and Rustomjee Prive in Bandra East are anticipated to boost sales in FY26 significantly.

JM Financial forecasts a 31% CAGR in pre-sales from FY25 to FY27, driven by a robust pipeline of new launches and a rise in redevelopment opportunities.

In summary, JM Financial’s strategic recommendations for these four companies underscore their belief in their resilience and growth prospects in challenging market conditions. With a mix of innovative launches and strong performance metrics, these firms are positioned well for future success.