Realty stocks are looking bullish on expectations of strong demand during the festive season and fall in home loan rates. In such a situation, the shares of Godrej Properties have seen a strong rise of 60 percent in 1 month. Analysts say that real estate stocks will remain bullish in the long term. Because this sector is now seen coming out of the phase of consolidation. Analyst advises that we should buy Quality Reality stocks at this time every fall.
Analysts also say that due to the Evergrande Debt Crisis, investors are withdrawing money from China and putting it in many other countries including India. This can also be a reason for the rise in realty stocks.
Godrej Properties Its market cap is Rs 65,000 crore. It has been the biggest gainer in the Nifty Realty Index for a period of one month. The Nifty Realty Index has shown a rise of only 35 per cent in the last one month. By the way, Nifty Realty Index has also been the biggest sectoral gainer of this period. At the same time, in the last one month, only 8 percent gain has been seen in Nifty. Godrej Properties had posted its 52-week high of Rs 2,409.95 on BSE on September 29. However, there was a decline in the BSE Sensex on that day.
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Ankur Saraswat of Trustline Securities It says that the expectation of strong demand in the festive season, non-increasing prices from the developers side, low interest rates and gradual lifting of restrictions imposed due to Covid-19, along with realty stocks seems to be rallying.
The company has entered into an agreement for land redevelopment in Wadala, Mumbai at 7.5. Due to which this stock also gained momentum today. The company said in its statement issued about this that it will have a salable area of about 1.6 million square feet. Residential apartments will be built on this land.
What to do with this stock now?
Atish Matlawala of SSJ Finance It is said that this stock has seen a lot of growth in a short period of time. In such a situation, now short term investors should now recover profits in it.
Ankur Saraswat of Trustline Securities Says that the long run momentum will continue in the entire real estate sector itself. The sector has just come out of a phase of long consolidation. With higher month on month sales, launch of new projects, this stock will see strong growth in the short to medium term.
Ashutosh Tiwari of Equirus Securities It also says that the real estate sector is coming out of the deep cyclical down trend of 8-10 years. Now the next 4-5 years will see a boom in this sector. Quality stocks of such real estate should be bought every fall. Investors who want to invest for long to mid term can invest in quality stocks of this sector even at current level.
Rarely teased by SSJ Finance & Securities It is said that those who have this stock should keep some profit in their pocket and hold the remaining portion for the next target of Rs 2,600-2,750. For fresh purchases, wait for a correction in the Rs 1,900-2,000 range. On meeting these levels, a buy can be made with a short term target of Rs 2,600-2,750.
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