Domestic brokerage house HDFC Securities expects Q4FY22 presales of real estate company to largely remain in line with Q3FY22 sales, some developers may see decline, depending on miss of new launch timelines due to Covid third wave.
DLF (target price of ₹486), Oberoi Realty (TP: ₹1,142), Phoenix Mills (TP: ₹1,364), Brigade Enterprises (TP: ₹619), Prestige Estates (TP: ₹633), and Mahindra Lifespaces (TP: ₹473) are the brokerage’s top stock picks in the realty space.
HDFC Securities said it continues to believe that tier-1 real estate developers will gain market share and remains positively biased towards the sector.
“Whilst Q4FY22 was a muted launch quarter, we expect launch momentum to pick up from Q1FY23, with some of the major launches from Prestige (MMR, most awaited), Oberoi (Thane, long due) and Mahindra Life (Bengaluru, Chennai). We expect launches to result in a strong Q1FY23 in the absence of any covid fourth wave,” the note stated.
HDFC Securities also has Buy ratings on Sobha Developers (target price: ₹1,000), Kolte-Patil Developers (TP: ₹381) and Add tag on Godrej Properties shares (TP: ₹1,804).
On the back of all-time high affordability (note), demand remains robust and tier-1 developers continue to gain market share. Rising income levels, near-low mortgage rates, and stable property prices are some factors contributing to the strong demand.
“Whilst globally interest rates are expected to harden, the same is reflected in the around 50bps increase in India 10-yrs Gsec yield over the last month. We believe that this may not result in demand destruction as affordability remains high. Whilst we expect property prices to rerate, it may be on the back of a more sustained economic recovery and positive sentiment on consumption,” HDFC Securities’ note added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
