KR Choksey has come with its September quarterly earning estimates for real estate sector. According to the research firm, thigh debt levels, falling absorptions and high inventory remain a challenge for the sector. DLF and Sobha Developers have rallied by 10-15% in recent months.
Real Estate - Sector witnessed strong buying interest on the back of anticipated recovery in Indian real estate market, due to strong policy reforms in land acquisition bills coupled with expectation of decline in interest rate cycle, going forward. Most of the stocks sharply jumped in past 1 month, mainly due to value buying. However, high debt levels, falling absorptions and high inventory remain a challenge for the sector. Most of the companies trying to curb its debt by monetizing its core assets and fund its existing projects. Going forward, it would be very interesting to see the full year guidance and strategy of new launches due to upcoming festive seasons where most of the players witnessed strong sales volumes. The stocks under our coverage i.e. DLF and Sobha Developers rallied by 10-15% in recent months.Factors to watch in the Q2FY13 result| Company | Sales (Rs Cr) | PAT (Rs Cr) | ||
| FY13E | FY14E | FY13E | FY14E | |
| Sobha Developers | 1,891 | 2,096 | 245 | 312 |
| DLF | 9,905 | 11,416 | 1,375 | 1,673 |
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
