Real estate shares trade weak; HDIL, DB Realty hit 52-week lows

Ansal Properties, D S Kulkarni Developers, Nitesh Estates and Peninsula Land hit 52-week lows.

Shares of real estate companies were trading weak with nine companies from the sector hitting their respective 52-week lows on the BSE.

Housing Development & Infrastructure (HDIL), D B Realty, Kolte-Patil Developers, Ansal Properties & Infrastructure, D S Kulkarni Developers, Nitesh Estates and Peninsula Land were trading at their 52-week lows on the BSE.

At 10:34 am; the S&P BSE Realty index, the largest loser among sectoral indices, was down 1.2% as compared to 0.33% rise in the S&P BSE Sensex.

Since November 8, post demonetization, the realty index tanked 18% against 6.2% decline in the benchmark index. The stock price of Unitech, DLF and HDIL were plunged more than 25% each during the period.

Company	08/11/2016	LTP	% chg
Unitech	5.69	4.00	-29.70
DLF	143.65	103.75	-27.78
HDIL	74.45	54.00	-27.47
Godrej Properties	358.50	295.50	-17.57
Indbulls Real Estate	80.50	66.90	-16.89
Oberoi Realty	338.10	287.90	-14.85
Sobha	270.35	243.30	-10.01
Prestige Estates	183.00	165.10	-9.78
Omaxe	165.85	157.25	-5.19
Phoenix Mills	363.55	365.05	0.41
LTP : last traded price on BSE in Rs

Real estate demand has been lacklustre over the last 3-4 years due to several factors. Demonetisation is expected to further dampen demand and negatively impact prices in the sector, in part supported by the presence of the parallel economy.

According to rating agency CARE, the demand is expected to decline, especially in markets and segments with a higher share of cash transactions. Demonetisation will lead to lower liquidity at the hands of potential buyers, thereby negatively impacting demand.

Reduced prices, lower demand and difficulty in monetizing land may lead to cash flow mismatches for the developers, which may lead to stressed liquidity of developers and delay the ongoing projects. These problems will persist in the medium term.

In the long run, a large part of the unaccounted money which is now expected to be infused back into the formal system would lead to demand from genuine buyers or end users in the market. The increased liquidity in the banking system would lead to lower interest rates which will encourage genuine buyers to invest in property, CARE said in a report.

Meanwhile, in his monthly radio address on Sunday, Prime Minister Narendra Modi defended demonetisation, which he has billed as an attempt to fight corruption, and said the government would implement the law to clean up India's real estate records in coming days, according to Reuters report. CLICK HERE TO READ FULL REPORT

COMPANY	LATEST	52 WK LOW	PREV LOW	PREV DATE
ANSAL PROPERTIES	14.10	13.00	13.65	23-Nov-16
D B REALTY	35.45	35.15	35.80	26-Feb-16
D S KULKARNI DEV	63.00	54.55	58.20	26-Dec-16
H D I L	54.05	52.25	53.95	22-Nov-16
JRI INDS.	2.00	2.00	2.06	02-Dec-16
KOLTE PATIL DEV.	80.50	78.75	80.30	26-Dec-16
NITESH ESTATES	9.25	9.00	9.12	26-Dec-16
PENINSULA LAND	13.35	13.15	13.20	26-Dec-16
VAS INFRA.	10.45	10.45	10.90	25-Nov-16