There is a strong demand in the realty sector after recovering from the challenges of COVID 19. Due to increase in demand, shares of real estate companies are also seeing a rise.
Realty Stocks: The sector which was affected the most by the corona virus epidemic in the country, is also the realty sector. However, now overcoming the challenges of COVID 19, strong demand is being seen in this sector. Due to increase in demand, shares of real estate companies are also seeing a rise. At the same time, rising prices of metals, cement and other raw materials used in construction are also supporting the sector amid geopolitical tensions. IIFL VP-Research Anuj Gupta says that due to rising metal and commodity prices, real estate companies are increasing project prices, due to which this sector can outperform. Some of their shares can give high returns in double digits.
Preference is also being made for investment
According to a survey by Magicbricks, in Q1 2022, demand has seen a growth of 4.6 percent on a quarterly basis and 6.7 percent on a yearly basis. While the cumulative supply remained stable. Search volumes in Mumbai, Gurugram, Noida and Delhi saw a growth of 15.2%, 9.6%, 8.2% and 5.6% on a quarterly basis. Anuj Gupta says that due to the better looking outlook of the realty sector, now investment is also increasing in it, which is a factor. At the same time, the sector will also benefit from the government’s focus on affordable houses. Further, shares like DLF and Godrej Properties can outperform. He says that apart from metals and commodities, fuel prices have increased by 10% to 15%, due to which the project cost of companies has increased by 8% to 15%.
DLF
Rating: Buy
Target Price: Rs 490-530
CMP: Rs 396
Stop Loss: Rs 335
Realty stock DLF is looking strong on Technical chart. There is positive momentum in the stock. The stock had closed at Rs 396 on Friday. The stock can show a price of Rs 490 to Rs 530 in the next few days. For this target, let’s move by putting a stop loss at Rs 335. The company will get the benefit of strong recovery in housing demand and rental business across the country. Affordable housing is the main business area of the company. In the December quarter, the company had a profit of about 382 crores, while the revenue was 1687 crores.
Godrej Properties
Rating: Buy
Target Price: Rs 1850-1900
CMP: Rs 1665
Stop Loss: Rs 1500
Realty developer Godrej Properties is fundamentally a strong company. Positive trend is being seen in this stock since last 1 month. After making a low of Rs 1350, there is a good rally in the stock. The stock closed at Rs 1665 on Friday. Rising prices of Ra Metals and Commodities and strong investment demand are giving further support to the stock. The stock can show a price of Rs 1850 to Rs 1900 in the next few months itself. For the quarter ended December 2021, the company’s Conso profit was up 171 per cent year-on-year at Rs 39 crore, while revenue was up 30 per cent at Rs 399 crore.
KBC GLOBAL
Rating: Buy
Target Price: Rs 17-20
CMP: Rs 11
Stop Loss: Rs 7
Realty share KBC GLOBAL has been witnessing sustainable volume since last 2 to 3 weeks. This is a sign that positive momentum is starting in the stock. The stock had closed at Rs 9 on Friday. This stock was split in 2021. In the short term, this stock can show a price of Rs 17 to Rs 20. Put a stop loss at Rs 7 for this target. The company is Nashik based and the company’s EBITDA has increased by 73 percent in Q2 FY22 and profit by 115 percent in comparison to Q2 FY21.
(Disclaimer: Stock investment advice is given by experts. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
