Nifty realty surges to all-time high; Macrotech Developers, Sobha, DLF shares rise up to 20%

Shares of several real estate companies were on a roll on January 4 with the Nifty Realty index surging more than 6 percent to a fresh all-time high of 836.45. The gains were led by Sobha which zoomed 20 percent to a new record high after Motilal Oswal Financial Services said the stock is one of its top picks for the year 2024.

The brokerage has a buy call on the stock with a target price of Rs 1,400 as it believes Sobha will provide further growth visibility as it unlocks its vast land reserves and explores opportunities beyond its existing land bank.

Project launches on its large land parcels in Bengaluru and Tamil Nadu will drive re-rating for Sobha‘s existing land valuation, it said.

“After underperforming its listed peers on pre-sales growth over FY21-23, we believe Sobha is set to outperform in terms of growth given its focus on unlocking its vast land reserve and exploring external growth opportunities through its healthy balance sheet,” Motilal Oswal added.

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Shares of Lodha, listed as Macrotech Developers, jumped over 8 percent after the company finalised agreements for the acquisition of a 100 percent stake in Goel Ganga Ventures India Private Limited (GGVIPL). Following this transaction, GGVIPL is set to become a wholly-owned subsidiary of the company.

Godrej Properties stock also rallied 8 percent intraday and the stock has been in an uptrend after the company, on January 3, announced its acquisition of a 4-acre land parcel in Bengaluru for a luxury housing project. This project is estimated to have a developable potential of about 0.7 million square feet of saleable area, comprising primarily of premium residential apartments, and a revenue of Rs 1,000 crore through sales of those apartments.

Oberoi Realty shares zoomed around 7 percent after the company announced a management change. It appointed Nimit Gala, who comes in with 11 years of experience, as General Manager- Investor Relations. Prior to joining Oberoi Realty, Gala was associated with various companies  operating in the domain of real estate development, research and analysis, and credit ratings, the company said.

Also Read | Lodha Group finalises acquisition of Goel Ganga Ventures

DLF shares were also up over 5 percent, after Aakash Ohri, Joint MD and Chief Business Officer of DLF Home Developers, told Moneycontrol that the share of NRI investments in the total sales of DLF is likely to rise to around 20 percent in FY24. Meanwhile, shares of Prestige Estates Projects and Sunteck Realty also rose up to 4 percent on January 4.

Brigade Enterprises shares surged over 6 percent. The rise was spurred by the company’s recent acquisition announcement on January 2. It disclosed the acquisition of an additional 4.53% stake in BCV Developers Private Limited, a subsidiary, from its current joint venture partners.

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