Stocks To Buy: Sharekhan Picks 3 Real Estate Sector Stocks Offering Good Gains

Sharekhan has recommended investors to buy 3 stocks with good returns from Real Estate sectors. These stocks are Oberoi Realty, Puravankara, and Macrotech Developers. The current market price (CMP) of Oberoi Realty is Rs 954 apiece, Macrotech Developers Rs 1008 apiece, and Puravankara Rs 94 apiece.

If you buy Oberoi Realty at its CMP, you will get 28% return and if you invest in Macrotech Developers at its CMP, you can get 36% potential return. Meanwhile, if you decided to buy Puravankara at CMP, you will get 32% return.

1. Buy Macrotech Developers

The current market price of Macrotech Developers is Rs 1008 with intraday gain of 0.99% gain.

Sharekhan has recommended investors to buy Macrotech Developers with the target price of Rs 1368 apiece as the stock has the potential to offer 36% return.

Return: The stock has given 118% return in last 5-years and declined 29% in last 1-year. It has gained nearly 2% in last 1-month.

Stock Performance: The stock's 52-week high is Rs 1508 and 52-week low is Rs 814 apiece, respectively. The company has a market capitalisation of Rs 48,631.99 crore. It was incorporated in 1995.

According to Sharekhan, "Our real estate coverage universe (excluding Indiabulls Real Estate) continued to report strong residential pre-sales for Q2FY2023, which were up 51% y-o-y (up 13% q-o-q). Sobha, Prestige Estates and Macrotech reported 71%/66%/57% y-o-y jump in pre-sales, while Indiabulls reported 43% y-o-y dip (as per expectation) on account of lower available inventory. However, realty companies disappointed on revenue recognition leading to 11% y-o-y decline in net revenues and 9.6% y-o-y decline in operating profits."

2. Buy Puravankara Ltd

Stock Performance: The current market price of the stock is Rs 94 apiece with an intraday decline of 0.99% till afternoon trading. The company has a market capitalisation of Rs 2242 crore.

Sharekhan has recommended investors to buy Puravankara Ltd at the CMP to receive 32% potential return. The analyst has assigned a target price of Rs 124.

Return: The stock declined 30% in last 5-years, 32% in last 1-year, and gained 60% in last 3-years. It has declined 12% in last 3-months. The real estate company was incorporated in 1986.

According to Sharekhan, "The real estate sector is expected to benefit from structural growth drivers in the residential segment, which is likely to sustain pre-sales momentum going ahead.

Key Risks: Macroeconomic weakness would lead to a lowering of companies' earnings estimates and valuation multiples.

3. Buy Oberoi Realty

The current market price of the stock is Rs 954 apiece with an intraday dip of 0.65%. Sharekhan has suggested investors to buy Oberoi Realty with a target price of Rs 1224 apiece to receive the potential return of 28%.

Stock Performance: The stock's 52-week high is Rs 1088 apiece and 52-week low is Rs 726 apiece. 

 

The company has a market capitalisation of Rs 34,711 crore.

Return: The stock has given return of 101% in last 5-years, 87% in last 3-years, and 12% in last 1-year. The large cap company was incorporated in 1998.

Disclaimer

The stocks have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.