Expert Views on Godrej Properties and Prestige Estates Projects
Expert Views on Godrej Properties:
Top traders cutting their forecasts of revenue for real estate companies because the lock-down led by Covid-19 increased the uncertainty in this market. One day after the target price for high unsold inventory woes of Oberoi Realty reduced by CLSA, the UBS reduced the share stock to buy and reduced the target price to Rs 300.
In addition, UBS downgraded to buy Godrej Properties and Prestige Estates Projects. UBS has, overall, lowered these stocks’ target prices by 53-57%. UBS thinks the pandemic-induced lockdown has slowed Indians’ residential real estate recovery.
“Since the lockdown, residential sales have broken down. In view of the economic effects of Covid-19 and of the uncertain income/employment outlook, we expect that the path to normalcy could be longer, “UBS said.
UBS clarified that it took 16 months for aggregated primary property volumes to recover in the sense of the global financial crisis. The brokerage predicts an industry pre-sales decrease of 25% and system realizations pressure for the next fiscal year.
“Our covered developers still trade at an average discount of 20% with an average Year-to-date drop of 45%, and we conclude that they are at risk because the path to normalcy often longer,” said UBS.
Buy ratings for DLF and Phoenix Mills have been maintained. In the near to medium term the brokerage predicts residential real estate to fixed, but prices are likely to decline by no more than 15-20%.
In the meantime, CLSA thinks that luxury Mumbai apartments could see a further decline in prices. Expectations for prices have decreased by 10-15% and sales in distress have also fallen, the broker said.
May 13 Stock Market Update Sensex and Nifty
On the third day of the week, the stock market trading with the bullish trend. The Sensex traded with a gain of 735.11 points reached a 32,106.23 level with 2.34% up. Whereas, Nifty traded with a gain of 208.90 points reached 9,405.45 level with 2.27% up.
In the border market, the S&P BSE Midcap traded with a gain of 173.33 points reached 11,584.73 with 1.52% up. Whereas, S&P BSE SmallCap traded with a gain of 182.48 points reached 10,748.63 with 1.73% up. At the same time, Nifty bank traded with a gain of 913.55 points reached 19,776.40 with 4.84% up.
Top Gaining Stocks: ICICI Bank, Larsen & Toubro, UltraTech Cement, Shree Cement, and Bajaj Finance Ltd.
Top Losing Stocks: Nestle India, Sun Pharmaceutical Industries, Bharti Airtel, and Tata Consultancy Services Limited.