Realty index leaps to 15 yr-high; Lodha, Signature Global also at new peaks

Lodha hit a record high of Rs 805 on rallying 6 per cent on the National Stock Exchange (NSE) in intra-day deal today

Shares of real estate companies were buzzing in trade and prompted a sharp up move in the Nifty Realty index, which leaped to its highest level in 15 years on strong housing demand.

Nifty Realty index was quoting at its highest level since September 12, 2008. In Thursday's trade, it hit an intra-day high of 621.65, up 1.3 per cent, surpassing its latest 52-week high of 619.90 touched on October 13. 

Macrotech Developers (Lodha), Signature Global (India), Mahindra Lifespace Developers, Godrej Properties, Oberoi Realty and Sobha Developers were up between 2 per cent and 6 per cent in intra-day trade.

Lodha hit a record high of Rs 805, rallied 6 per cent on the National Stock Exchange (NSE) in intra-day deal today.

In the past five trading days, it has surged 17 per cent after the company reported its best ever pre-sales performance with a 12 per cent year-on-year (YoY) growth in September quarter (Q2FY24) along with continued debt reduction and robust business development.

On the ground, demand conditions continue to remain strong on the back of strong affordability and consumer confidence. Intense competition among mortgage providers coupled with the Reserve Bank of India (RBI) pause and the expected downward trajectory for rate cycle in 2024 means the peak of mortgage rate.

Likely reduction in mortgage rate as well as government’s affordable housing incentives will act as a further tail wind for the demand especially for the affordable segment where we have significant presence, the company said.

Shares of Signature Global were up 3 per cent at Rs 597.15, also its highest level since its stock market debut on September 27.

The stock was trading higher for the fifth straight day, surging 13 per cent during the period. In the past one month, it has rallied 25 per cent, while it has zoomed 55 per cent against its issue price of Rs 385 per share.

Signature Global holds a market share of 19 per cent in Delhi NCR in affordable and Mid-housing segment.

Backed by marquee equity investors like HDFC and IFC, Signature Global has currently delivered over 6 million square feet and has ongoing projects in 17.21 million square feet area along with a robust forthcoming pipeline of 21.29 million square feet of saleable area.

The total portfolio currently comprises 60 projects, with nearly 28,000 units sold and about 21 forthcoming projects.