 "Nifty Realty top sectoral gainer in CY17 so far; 2 stocks turn multibaggers")
Realty stocks have been on fire with the Nifty Realty index topping the sectoral chart on year-to-date basis on the hopes of a turnaround and transparency in the sector post the implementation of Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST).
The Nifty Realty index added over 64% so far in 2017 as compared to nearly 22% gains on Nifty, while the two stocks, Indiabulls Real Estate and Unitech, turned multibaggers during the same period, data available with database AceEquity showed. (see table).
Other sectoral gainers on year-to-date basis included Nifty Finance, Nifty PVT Bank, Nifty Bank, Nifty Consumption, Nifty Metal and Nifty Energy, which gained anywhere between 26% and 36%.
On Wednesday, the Nifty Realty index was trading 0.8% higher at 274 levels.
The YTD gains on the Realty index were led by Indiabulls Real Estate (up 256%), Unitech (up 101%), Godrej Properties (up 66%) and DLF (up 60%). Indiabulls had seen a spurt of over 40% in just one day in April after the company reorganised its businesses and/or raised funds from marquee investors. CLICK HERE FOR FULL REPORT
Analysts at Edelweiss Securities, meanwhile, remain constructive on the sector in view of improved transparency and customer confidence coupled with favorable fundamentals.
"In medium term, less-capitalised and non-serious players may find complying with RERA provisions difficult, leading to partial/full exit from their projects. Serious and well-capitalised players should benefit from this with increased demand and higher realisations. Long term, we see serious participants with the ability and willingness to comply with RERA continuing in business," said Edelweiss Securities in a sector report dated August 7.
Analysts had maintained ‘BUY’ on Brigade Enterprises, Oberoi Realty, Sobha and Sunteck Realty, and ‘HOLD’ on DLF and Godrej Properties.
| Stock price (Rs) | |||
|---|---|---|---|
| Company Name | 8/8/2017 | 12/30/2016 | YTD % change |
| Indiabulls Real Estate | 253.70 | 71.25 | 256.07 |
| Unitech | 8.05 | 4.00 | 101.3 |
| Godrej Properties | 504.05 | 303.20 | 66.2 |
| DLF | 178.60 | 111.40 | 60.3 |
| Prestige Estate Projects | 263.90 | 170.00 | 55.2 |
| Sobha | 378.40 | 245.60 | 54.1 |
| Delta Corp | 168.30 | 110.00 | 53.0 |
| Phoenix Mills | 511.60 | 375.15 | 36.4 |
| Oberoi Realty | 376.25 | 295.35 | 27.4 |
| Housing Development & Infrastructure | 56.40 | 59.90 | -5.8 |
| NIFTY 50 | 9978.55 | 8185.80 | 21.9 |
| NIFTY REALTY | 272.40 | 165.35 | 64.7 |
| Source: AceEquity | |||
