The real estate sector in India has been a key driver of economic growth, and in 2024, it continues to capture the attention of investors. Real estate stocks, particularly those from large developers, have seen significant interest due to the sector’s recovery post-pandemic. The sector’s resilience is backed by growing demand for residential, commercial, and industrial properties across major cities, making it a potentially lucrative investment option. With favorable government policies and urbanization trends, the real estate sector in India is poised for sustained growth.
2 stocks to keep in your Radar are:
Macrotech Developers Limited
Share Price
The shares of Macrotech Developers Limited are currently trading at Rs. 1,119.1 up by 1.78% from its previous close of Rs. 1,099.55 as of January 27, 2025.
Q3 Results
Macrotech Developers Ltd. reported strong Q3 performance, with profit surging by 87% to Rs 944.8 crore, compared to Rs 505.2 crore in the same period last year. Revenue also saw significant growth, increasing by 39.3% to Rs 4,083 crore, up from Rs 2,930.6 crore. The company’s operational efficiency improved as well, with its Operating Profit Margin (OPM) rising from 30% to 32%.
This stellar performance reflects the company’s ability to deliver strong financial results driven by increased orders and strategic execution across key sectors, particularly in the Transmission & Distribution and infrastructure segments.
Brokerage Target & Rationale
Kotak Institutional Equities has upgraded Macrotech Developers Ltd. (Lodha) to a “BUY” rating from “ADD,” while maintaining its price target at ₹1,340. The brokerage’s target implies a potential upside of 19% from the stock’s current levels. Kotak highlighted the company’s consistent and healthy growth, citing a 31% compounded annual growth rate (CAGR) in pre-sales from FY2021 to FY2024.
Additionally, Macrotech’s pre-sales for the first nine months of FY2025 have risen 25% compared to last year, achieving 73% of its full-year guidance. This strong performance underpins the brokerage’s positive outlook on the stock.
DLF Ltd
Share Price
The shares of DLF Limited are currently trading at Rs. 715 up by 2.83% from its previous close of Rs. 695.25 as of January 27, 2025.
Q3 Results
DLF Ltd. reported a steady performance in its Q3 results, with sales marginally increasing by 0.5% year-on-year, from Rs. 1,521 crore to Rs. 1,529 crore. The company’s profit saw a significant jump of 61%, rising from Rs. 656 crore to Rs. 1,059 crore, reflecting improved profitability.
However, the Operating Profit Margin (OPM) declined from 34% to 26% YoY, primarily due to higher costs or changes in the revenue mix. Despite the margin contraction, the strong growth in profit highlights DLF’s robust performance and successful execution of its real estate projects.
The primary reason for the rise in the net profit is because of credit received from deferred tax liability
Brokerage Target & Rationale
Jefferies has maintained a “BUY” rating on DLF Ltd. with a target price of Rs. 1,000, citing a strong performance in Q3, with pre-sales exceeding estimates. The successful launch of Dahlias Golf Course Road and a surge in cash collections were key drivers, with the P&L broadly in line with expectations.
Meanwhile, CLSA has retained an “Outperform” rating with a target price of Rs. 975. CLSA highlighted DLF’s record quarterly sales, marking the highest-ever sales for any developer in India. The firm emphasized the strong pre-sales performance despite the high ticket size of Rs. 650 to 750 million per apartment, which underscores DLF’s dominant brand positioning in the NCR market. Notably, DLF has already surpassed its FY25 sales target, reflecting robust demand and investor confidence.
Written By: Dipangshu Kundu
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