Nifty Realty index zooms 50% from November lows; Sobha soars 15%

Sobha, Godrej Properties, Prestige Estates, Sunteck Realty and Delta Corp hit 52-week highs

Shares of real estate companies were in focus with the Nifty Realty index surging more than 3% on Wednesday after a strong rally in stocks like Sobha and Godrej Properties.

At 12:52 pm; Nifty Realty index, the largest gainer among sectoral indices, was up 3.5% at 226.70 as compared to 0.19% rise in the Nifty 50 index.

The real estate index hit a fresh 52-week high of 227.85 in intra-day today. The index rallied 50% from its 52-week low of 151.50 touched on November 22, 2016.

Sobha, Godrej Properties, Prestige Estates, Sunteck Realty and Delta Corp have hit their respective 52-week highs on the NSE.

Sobha rallied 15% to Rs 395 after the company said the operational cash flow of the company remained healthy and positive during the fourth quarter of 2016-17 (Q4).

The company during Q4 recorded sales volume and values growth of 18% and 35% respectively as compared to preceding quarter performance.

“Average price realisation is higher due to increased demand from higher valued products during the fourth quarter. It is encouraging to observe that the company has witnessed revival in demand in the Delhi-NCR market,” Sobha said in a Q4FY17 real estate operational update.

Sobha expects that the real estate sector would be able to transition smoothly to a new era governed by RERA (real estate regulation act) and GST Act.

The RERA Act would have huge transformational impact on the real estate sector. From GST, the realty sector should see some benefits on absorbed costs like cement, steel and other building materials, the company said.

"Union Budget has given special emphasis to the affordable housing segment. The infrastructure status would certainly help the real estate entities with impeccable governance practices to raise funds at substantially better interest rates," it added. 
 

Sobha informed that its borrowing cost has been further brought down during the quarter by more than 50 basis points to below 10.5% per annum.

Company	22/11/2016	LTP	% chg
Sunteck Realty	177.95	404.95	127.6
Delta Corp	108.70	209.00	92.3
Sobha	256.00	390.45	52.5
HDIL	56.40	83.60	48.2
Godrej Prop	299.50	440.90	47.2
Indiabulls Real	62.70	91.45	45.9
Prestige Estates	156.25	225.75	44.5
Oberoi Realty	274.75	375.95	36.8
DLF	111.00	149.05	34.3
Unitech	4.19	5.35	27.7
Phoenix Mills	334.60	422.20	26.2
Omaxe	155.35	169.80	9.3
Nifty Realty	159.70	226.70	42.0
Nifty 50	8108.45	9250.95	14.1
LTP : Last traded price on NSE in Rs at 12:52 pm