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D-Street Buzz: Realty stocks rally led by Indiabulls Real Estate, Sobha, Oberoi Realty; DLF hits 52-week high

Jefferies expects residential sales to cross 2019 levels, inventory to fall to an 8-year low by the end of 2021 and prices to rise by more than 10 percent over the next two years.

January 19, 2021 / 11:40 AM IST

The Indian stock market continues trading in the green and is trading at day's high with Sensex is up 525 points or 1.08 percent at 49089.27, and the Nifty jumped 152 points or 1.06 percent at 14433.30.

The realty index was the outperforming sector, up over 4 percent led by Indiabulls Real Estate which spiked over 10 percent followed by DLF, Oberoi Realty, Sobha, Godrej Properties and Prestige Estates.

Shares of Indiabulls Real Estate gained after the company reported a 64 percent rise in its consolidated net profit to Rs 80.69 crore for the quarter ended December. Its net profit was Rs 49.27 crore in the year-ago period.

The company's total income was Rs 756.81 crore during the third quarter of the fiscal year, against Rs 1,317.70 crore a year ago, the Mumbai based realtor said in a regulatory filing.

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Realty stocks have risen as low-interest rates, changes in government policies and economic recovery are expected to augur well for the sector.

The underperforming sector for the last 5 years could well turn out to a Dark Horse in the year 2021, either in physical form or in the financial form, in the investors’ portfolio, said Sunil Rohokale, MD & CEO, ASK Group.

Global brokerage firm Jefferies has recently raised target estimates for all realty stocks in its coverage. Godrej Properties and DLF are its top picks.

Jefferies expects residential sales to cross 2019 levels, inventory to fall to an 8-year low by the end of 2021 and prices to rise by more than 10 percent over the next two years.

Maharashtra government has cut real estate premiums by 50 percent till December 31, 2021, which as per the experts, is a win-win for home buyers as well as developers.

Brokerage firm Prabhudas Lilladher believes the sector is picking up so select stocks from this sector should continue to soar high in 2021. "Godrej Prop, Oberoi Realty, Sobha for the long-term and DLF would be a good trading bet," said Prabhudas Lilladher.

Among the real estate names, the stocks that hit new 52-week high included DLF and DB Realty.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandip Das
first published: Jan 19, 2021 11:40 am

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