India’s real estate sector is witnessing a healthy increase in demand and the overall market outlook is bright for the real estate industry. Brokerage firm Angel One has given targets for these real estate stocks.
Sobha Ltd- Target ₹ 1050
Sobha Limited is an Indian multinational real estate developer that offers residential as well as commercial properties in major cities across India. Some of its largest clients are Infosys, HCL Technologies and ITC.
It is the only backward integrated real estate developer in the country (it manufactures building materials like concrete blocks, doors, windows and furniture by itself), and this helps it to reduce input costs to a significant extent.
As of December 2021, had unsold inventory (completed projects) worth ₹ 320 crore which is one of the lowest in the industry. Further, it takes only 136 days to sell a unit, whereas, its competitors take anywhere between 500 to 600 days. Its gross margin has been increasing consistently, with a CAGR of 11% over the last five years.
Analysts at Angel One have given a target of ₹ 1050 on the stock as of 8th March 2022. Currently, the share is trading at ₹ 753.95 apiece. This means that there is an upside of 39.26%.
Oberoi Realty – Target ₹ 1250
It is a real estate company that is focused on the Mumbai Metropolitan Region and builds residential as well as commercial real estate for its clients.
On March 3, 2022, Global investment Bank Morgan Stanley picked up 3.35 lakh square ft of office space in Mumbai from Oberoi Realty, according to sources.
Angel One expects that there will be growth in the residential sector and the momentum will continue over a couple of quarters. As per their report, they have seen good consolidation in across India towards top-10 players that now hold 11.2% of the market share as compared to 5.4% in 2017.
It has given a target of ₹1250 per share as of March 8, 2022, when the share was trading at ₹796 levels, with an upside of 57%. Currently, the share is trading at ₹911.60. If investors enter at this point, they’ll be making 37.13% returns.
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