Street Signs: Realty stocks back on radar, Data Pattern shares, and more

Realty stocks back on radar

Realty stocks are among the best performers this year with the BSE Realty index surging 65 per cent year to date. However, the index came off as much as 15 per cent last month from its peak of 4,425 hit on November 9. Investors, however, seem to be once again piling onto realty stocks. So far this month, the BSE Realty index is up 7.4 per cent. “We are witnessing pricing power come back in the developers’ hands, combined with strong volumes. This has led to a rerating of the sector which is driving the realty index,” says Sharad Agrawal, ED - Capital Markets, Knight Frank India. Another positive trigger is rising FPI interest. Overseas investors have increased their allotment to the sector from less than 1 per cent during the start of the year to 1.4 per cent at the end of November.

Metro boost for Mirza International 

Shares of Mirza International, the company that owns Red Tape brand of shoes, soared over 60 per cent in the past one month. Market watchers say the trigger has been the forthcoming IPO of footwear company Metro Brands, which is eyeing a market cap of around Rs 13,500 crore. “The listed space is dominated by companies Bata, Mirza, Khadim and now Metro. Investors have suddenly realised that Mirza’s valuations are attractive relative to peers,” said an analyst. “Even after the latest jump, Mirza’s price-to-earnings (P/E) multiple is quite low compared to other peers,” he added.

Data Patterns to do MTAR encore?

Shares of Data Patterns were changing hands at a premium of 85 per cent ahead of its Rs 588-crore IPO, which opens on Tuesday. The Chennai-based firm is a supplier of electronics systems to the defence sector. In March, Data Pattern’s private sector peer MTAR Technologies’s Rs 597-crore offer had seen 200 times subscription and its shares had soared 82 per cent on the first day of trading. “We expect Data Patterns’ IPO to see similar success as Mtar. The company has recorded good growth over the last three years and has a strong order book,” said an analyst.