Big action was seen in the shares of real estate companies on Thursday. Shares of most realty companies saw a rise of 5 to 15%. DLF gained 6.37%. Oberoi Hotel shares rose 5.65%. Shares of 8.17% estate companies in Godrej Properties reached a record high. These two companies are- Sobha Ltd. and Macrotech Developers Ltd.
The reason for the rise in the shares of real estate companies is the strong sale of houses in the last year. According to the report of real estate consultant Anarock, a record increase of 31% has been registered this year in the sales of houses in 7 major cities of the country including Delhi, Mumbai, Pune. In the year ending 2023, people have so far bought a total of 4.77 lakh houses.
Shares of Shobha Limited reached its all-time record high after Motilal Oswal Financial Services Limited increased the target price. The brokerage had earlier increased the target price from Rs 960 to Rs 1,400. He cited the company’s better growth outlook, cash flow and profits as the reason behind this.
What did MOFSL say in the report?
The brokerage said in its report that the growth of Shobha Limited will be good. The company is exploring external growth opportunities through its good balance sheet. Motilal Oswal has estimated a growth of 4% in pre-sales for FY24 and 12% for FY25. It has included a large number of additional launches in its estimates during FY24–26.
Shobha’s shares saw a rise of up to 15.10% on Thursday. The company’s shares have seen a rise of 114.68% in the last one year. The total traded volume for the day so far is 20 times its 30-day average.
According to Bloomberg data, all 17 analysts tracking the company have a buy rating on the stock. The stock may fall by 19.4%.
What is the reason for the boom in macrotech developers?
At the same time, shares of Macrotech Developers reached a record high on Thursday with a rise of about 8%. The company acquired 100% stake in Goyal Ganga Ventures India Limited. Due to this, there has been a rise in the shares of the company.
According to the exchange filing, Goyal Ganga Ventures will become a wholly owned subsidiary of the company. The acquisition will be effective from January 15.
A rise of up to 7.90% was seen in the company’s shares. This is the biggest jump after its listing on April 19, 2021. The stock has gained 100.59% in the last 12 months.
Of the 19 analysts tracking the company, 12 have a buy rating, five have a hold and two have a sell rating. There is a possibility of a decline of 16.8% in its shares.
