Nifty Realty index zooms 104% in 2017; DLF,Godrej Properties soar over 125%

Brigade Enterprises, Kolte-Patil Developers, Sunteck Realty, Indiabulls Real Estate, Puravankara and Sobha among frontline realty stocks have become multi-bagger and rallied upto 587% so far in 2017.

Shares real estate companies continue at their upward journey with the Nifty Realty index hitting a fresh 52-week high of 337.65 on the National Stock Exchange (NSE) in intra-day trade. The index has gained over 100% thus far in the calendar year 2017 (CY17).

At 10:08; Nifty Realty index, the largest gainer among sectoral indices, was up 1.2% at 337 on Tuesday, and has zoomed 104% from its 165.4 levels on December 30, 2016, on the back of an improvement in affordability, and multiple developments on the policy initiatives front during the current year. By comparison, Nifty 50 was trading marginal 0.02% higher at 10,494 today, was up 28% thus far in CY17.

Brigade Enterprises, Kolte-Patil Developers, Sunteck Realty, Indiabulls Real Estate, Puravankara, Godrej Properties, Sobha and DLF among frontline realty stocks have become multi-bagger and rallied up to 587% so far in CY17.

Rahul Maroo, senior vice-president and head of international sales, at Omkar Realtors said, "The introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA), Goods and Services Tax(GST), the demonetisation and Benami Transactions (Prohibition) Amendment Act have helped bridge the trust deficit between NRIs/institutional investors and India’s private realty players."

DLF was trading at an over four year high of Rs 252, up 3% on the NSE. The stock is trading at its highest level since May 20, 2013. Real estate major DLF earlier this month said that it plans to raise Rs 11,250 crore through issue of warrants and debentures to its promoters, subject to shareholders approval.

According to rating agency ICRA, going forward, significant reduction in DLF’s debt levels in the near term through the proposed CCPS transaction and  subsequent  planned  equity  raising  initiative and  improvement  in the  cash  flows  from  its core  real  estate  development  operations  would  be  amongst  the  key  rating  sensitivity  factors.

ICRA  has assigned a short-term rating of  [ICRA]A1 (pronounced  ICRA A  one)1 to  the  Rs 1000-crore commercial  paper  programme  of  DLF. Further, ICRA has outstanding rating of [ICRA]A(Stable) for Rs 6,798-crore bank facilities and Rs 3,6603-crore NCD programme, at present.

	Price on BSE in Rs
Company	30/12/2016	Latest	% chg
Brigade Enterpr.	150.50	1034.00	587.0
Kolte Patil Dev.	83.70	369.00	340.9
Puravankara	43.55	173.95	299.4
Sunteck Realty	108.08	419.00	287.7
Indbull.RealEst.	71.30	226.25	217.3
Sobha	246.35	618.50	151.1
Godrej Propert.	302.70	702.20	132.0
DLF	111.35	251.20	125.6
Unitech	4.03	7.48	85.6
Anant Raj	39.30	70.65	79.8
Nifty Realty	165.35	337.00	103.8
Nifty 50	8185.80	10489.85	28.1