Contra view! Realty stocks deliver skyscraping returns in last 1 year. Time to get off the escalator?
On Thursday, realty stocks jumped up to 19% with Sobha taking the lead. The soared jumped on a favourable view by Motilal Oswal which has picked the counter as its top bet for CY2024. Others including Godrej Properties, Lodha, DLF, and Swan Energy traded up between 9% and 2% around 12:15 pm.
Also Read: Sobha shares jump over 19%, hit 52-week high. Here's why
https://economictimes.indiatimes.com/markets/stocks/news/sobha-shares-jump-over-19-hit-52-week-high-heres-why/articleshow/106536137.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
The Nifty Realty index was the top performing index on the day with all the stocks trading in the green.
The index was up 6% on an intraday basis. And today was not an aberration as the gains accrued by this 10-stock index over 1 year period stand over 90% which is significant outperformance over Nifty and other sectoral indices. Nifty has delivered returns of 19% during this period.
Out of these stocks, five have given multibagger returns with Prestige Estates returning 18%, the highest among its peers. It is followed by Sobha (120%), DLF (104%), Brigade Enterprises (102%) and Macrotech Developers (100%). Others including Godrej Properties, Oberoi Realty, Phoenix Mills, Swan Energy and Mahindra Lifespace have given returns between 83% and 56%.
«I see that the stock prices leave no room for comfort because now the pricing is going beyond the common man's reach,» analyst Sanjiv Bhasin told ET Now.
