Select realty shares rally on good Q3 results

Unitech, HDIL, D B Realty, Sunteck Realty, Indiabulls Real Estate and Parsvnath Developers are up 2-12% on BSE.

Shares of select real estate companies have rallied by up to 12% on the bourses after reporting robust earnings for the quarter ended December 31, 2014 (Q3FY15).

Unitech, Housing Development & Infrastructure Limited (HDIL), D B Realty, Sunteck Realty, Indiabulls Real Estate and Parsvnath Developers are trading higher by 2-12% on the Bombay Stock Exchange (BSE).

At 1342 hours, S&P BSE Realty index, the largest gainer among sectoral indices, was up 1.8% compared to 0.35% rise in the benchmark S&P BSE Sensex.

Excluding DLF, the remaining 12 companies from the S&P BSE Realty index has reported 38% year on year jump in aggregate net profit at Rs 630 crore in Q3FY15. These companied had a combined profit of Rs 458 crore during the same quarter last year.

India's largest realty firm DLF posted 9% decline in its consolidated net profit at Rs 132 crore for the quarter ended December on lower sales.

Among the individual stocks, Unitech has surged 12% to Rs 18.70 reported a 32% increase in consolidated net profit at Rs 43.33 crore for the quarter ended December 2014 due to lower operational expenses and interest outgo. It had net profit at Rs 32.82 crore in the year-ago period.

Shares of HDIL has rallied 7% to Rs 117 on BSE after reporting nearly 13-fold jumped in its consolidated net profit at Rs 65.29 crore for Q3FY15, on back of strong growth in operational income. The Mumbai-based real estate developer had profit of Rs 5.10 crore in the same quarter last year.

Total sales during the period under review surged four-fold at Rs 359 crore from Rs 90 crore in the corresponding period.

Meanwhile, JP Morgan upgrades the stock with overweight rating with target price of Rs 140.

“HDIL’s 3Q EPS Rs 1.6 (+126% Y/Y) was ahead of expectations on recognition of Commercial sales in Kurla. Debt has gone down by 14% year to date (YTD) and presales are up 76% YTD. Improvement hence is seen on all metrics. The company expects to cut down debt by an additional Rs 200-300 crore by March and reduce it to under Rs 2,500 crore (Net D/E 0.2x by next year),” analyst said in a report.