You are here: Home » Markets » News
Business Standard

Realty shares rise on positive outlook; Oberoi, Godrej, Sobha gain up to 9%

At 01:05 pm, the S&P BSE Realty index, the top gainer among sectoral indices, was up 4.7 per cent

Buzzing stocks | Real Estate  | Oberoi Realty

SI Reporter  |  Mumbai 

Housing market, Homes, Real estate, Realty

Shares of companies rallied up to 9 per cent on the BSE on Monday on positive outlook. Oberoi Realty, Godrej Properties, Sobha, Indiabulls Real Estate, DLF, Prestige Estates Projects and Macrotech Developers (Lodha) surged between 3 per cent and 9 per cent on the BSE in intra-day trade today.

At 01:05 pm, the S&P BSE Realty index, the top gainer among sectoral indices, was up 4.7 per cent, as compared to a 0.59 per cent rise in the S&P BSE Sensex. The realty index, however, is down 9 per cent from its 52-week high level of 4,383, touched on October 18, 2021.

Among individual stocks, zoomed 9 per cent to Rs 984.35 after the Mumbai-based developer said the company has achieved gross bookings of around Rs 787 crore during the launch of its new tower in the Elysian project at Oberoi Garden City, Goregaon, Mumbai. With this, the cumulative gross booking value from January 1, 2021 till date in Oberoi Garden City stood at around Rs 2,705 crore, the company said. The stock had hit a record high of Rs 1,007 on October 14, 2021.

DLF, meanwhile, was up 4 per cent to Rs 415 on the BSE in intra-day trade after the company reported 61 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 380 crore for the second quarter ended September 2021 (Q2FY22).

"The residential business continues to tread on its growth trajectory with healthy traction and strong demand momentum across segments and geographies. New sales bookings exhibited a strong performance during the quarter and stood at Rs 1,512 crore, reflecting a YoY growth of 77 per cent," said.

The management further said we are encouraged with these improving demand trends in the residential and expect these trends to remain for the long run. "Given this positive outlook supported by improved fundamental drivers, we continue with our endeavor of bringing new offerings across segments and geographies. With increasing volumes and well calibrated price hikes, we expect further margin expansion for our projects," it said.

According to HDFC Securities, given the fact that is reviving office Capex plans, it is taking price hikes in the premium segment, there is stabilisation of office vacancy, and the company has robust launch plans. "We maintain BUY, to factor in demand recovery (office and residential) and better property price realisation," it said in a result update note.

"While the sector may see near-term headwinds, the long-term story remains intact. We continue to believe that tier-1 developers will gain market share, given consumers’ increasing buying preference for reputed developers in under construction projects. We remain positively biased towards the sector," the brokerage firm said in recent sector report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 01 2021. 13:46 IST