After hitting a record high yesterday (April 1, 2024), Nifty Real Estate today hit an all-time high of 950.85, despite the decline in the composite index. On a year-to-date basis, the index has soared more than 21%, and in one year the index has risen 143%.
Of the 10 stocks in the index, eight rose in price and two were in the red. Prestige Estate Projects rose over 5 per cent to Rs 1,330.7, while other stocks including Godrej Properties, Oberoi Realty and The Phoenix Mills rose 1-3 per cent. Traded.
Meanwhile, global brokerage firm Morgan Stanley said the relative outperformance of real estate companies could be due to pre-sale momentum. In line with this, brokers are considering reviewing their presales and raising the target prices of real estate companies.
stock |
new rating | previous evaluation | New target price | Old target price |
DLF | equal weight | Overweight | 900 rupees | 770 rupees |
godrej properties | Overweight | equal weight | 2500 rupees | 2050 rupees |
macrotech developer | equal weight | equal weight | 1050 rupees | 960 rupees |
Prestige Estate Project | Overweight | Overweight | 1400 rupees | 130 rupees |
The securities firm also lowered its FY25 forecast for the sector to 10-20% year-on-year (year-on-year), compared to the actual growth rate of 30-40% in the previous fiscal year. Additionally, foreign brokerages argue that as pre-sale momentum slows, the market is likely to focus on ROE, or return on equity.
In terms of presales on a year-on-year basis, the brokerage sees faster growth in Prestige Estates and Godrej Properties. On the other hand, Macrotech Developers and Oberoi Realty are better in terms of ROE.