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Nifty Realty top sectoral gainer in CY17 so far; 2 stocks turn multibaggers

Analysts at Edelweiss Securities remain constructive on the sector

Aprajita Sharma  |  New Delhi 

PE investors cautious on real estate Rera

have been on fire with the Nifty Realty index topping the sectoral chart on year-to-date basis on the hopes of a turnaround and transparency in the sector post the implementation of Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST).

The Nifty Realty index added over 64% so far in 2017 as compared to nearly 22% gains on Nifty, while the two stocks, and Unitech, turned multibaggers during the same period, data available with database AceEquity showed. (see table).

Other sectoral gainers on year-to-date basis included Nifty Finance, Nifty PVT Bank, Nifty Bank, Nifty Consumption, Nifty Metal and Nifty Energy, which gained anywhere between 26% and 36%. 

On Wednesday, the Nifty Realty index was trading 0.8% higher at 274 levels. 

The YTD gains on the Realty index were led by (up 256%), (up 101%), Godrej Properties (up 66%) and DLF (up 60%). Indiabulls had seen a spurt of over 40% in just one day in April after the company reorganised its businesses and/or raised funds from marquee investors. CLICK HERE FOR FULL REPORT 

Analysts at Edelweiss Securities, meanwhile, remain constructive on the sector in view of improved transparency and customer confidence coupled with favorable fundamentals. 

"In medium term, less-capitalised and non-serious players may find complying with provisions difficult, leading to partial/full exit from their projects. Serious and well-capitalised players should benefit from this with increased demand and higher realisations. Long term, we see serious participants with the ability and willingness to comply with continuing in business," said Edelweiss Securities in a sector report dated August 7.  

Analysts had maintained ‘BUY’ on Brigade Enterprises, Oberoi Realty, and Realty, and ‘HOLD’ on DLF and Godrej Properties.

  Stock price (Rs)  
Company Name 8/8/2017 12/30/2016 YTD % change
Indiabulls Real Estate  253.70 71.25 256.07
Unitech  8.05 4.00 101.3
Godrej Properties  504.05 303.20 66.2
DLF  178.60 111.40 60.3
Prestige Estate Projects  263.90 170.00 55.2
Sobha  378.40 245.60 54.1
Delta Corp  168.30 110.00 53.0
Phoenix Mills  511.60 375.15 36.4
Oberoi Realty  376.25 295.35 27.4
Housing Development & Infrastructure  56.40 59.90 -5.8
NIFTY 50 9978.55 8185.80 21.9
NIFTY REALTY 272.40 165.35 64.7
Source: AceEquity      

First Published: Wed, August 09 2017. 12:26 IST