Realty stocks on the rise: Sobha rises 16%; Macrotech, Godrej rally 

Shares of real estate companies are on the rise today with the Nifty Realty index surging over 6% and the S&P BSE Realty index rallying 5.64%. The Nifty Realty Index touched a fresh all-time high of 834.45 today, while the BSE Realty Index was just below its all-time high mark at 6,584.57.

In both the indexes, gains were led by Sobha Realty, which hit a fresh all-time high today at ₹1,335, up 16.3% as compared to the previous session close of ₹1,116.65 on the BSE.

The rally in Sobha Realty shares was witnessed following a report by brokerage major Motilal Oswal on January 3, 2024, which said Sobha "is set to outperform in terms of growth given its focus on unlocking its vast land reserve and exploring external growth opportunities through its healthy balance sheet".

The outperformance is also expected to be driven by improvements in profitability, it said, adding that Sobha is the brokerage’s “top idea for CY24 with a revised TP (target price) to INR1,400, 25% upside potential”.

The brokerage has given a 'buy' call on the stock with a current market price (CMP) of ₹1,120 and a target price of ₹1,400. "Our SoTP-based approach denotes 25% upside for SOBHA based on CMP; maintain Buy rating." 

In line with the broader real estate market, shares of another realty major Lodha, which is listed as Macrotech Developers, surged to an intra-day high of 7.18% before settling at ₹1,069, up 6.44% on the BSE. The company in an exchange filing today also said that it has acquired a 100% stake in real estate company Goel Ganga Ventures India Private Ltd, although the company has not reported any revenue in the past three years. 

Godrej Properties shares also surged to an intra-day high of 8.1% to ₹2,236.45 before settling at ₹2,212.75, up 7.74% on the BSE, taking its m-cap to ₹61,542.6 crore. The company on January 2, 2024, announced that it'll buy a 4-acre land parcel in the prime corridors of NorthWest Bengaluru.

"This project is estimated to have a developable potential of approximately 0.7 million square feet of saleable area comprising primarily of premium residential apartments of various configurations with an estimated revenue potential of INR 1,000* Crore with scope to increase to INR 1,250* Crore basis additional 1-acre land acquisition, making it overall a ~ 5-acre parcel," the company said. 

Shares of another real estate major DLF are up 6.27% currently at ₹760.5 on the BSE. During the intra-day trading, the stock hit a 52-week high at ₹764.85, taking the company's m-cap to ₹1.8 lakh crore. DLF shares have surged 17.35% in the past month, while the stock is up 55.49% on a six-month basis.

Other stocks in the Nifty and S&P BSE Realty indexes including Oberoi Realty, Brigade Group, Swan, Mahindra Lifespace Developers, Phoenix Ltd, and Prestige Estates -- all saw an upside momentum, with Oberoi Realty trading at 5.82%, followed by Brigade at 5.6% and Swan Emergy at 5.52%. Mahindra Lifespace, Phoenix and Prestige Estate stocks were trading up at 4.51%, 2.60% and 2.52%, respectively.