Global brokerage firm Morgan Stanley has raised its price targets for major real estate stocks with a bullish outlook, as it expects a multi-year turnaround in the real estate sector.
Global brokerage Morgan Stanley said demand supported by a strong macro economy and positive industry structure could lead to a multi-year upturn cycle in the real estate sector. However, he added that there are also significant drawbacks.
The industry upcycle began in 2021 in terms of average selling price (ASP) growth and is likely to continue with the help of strong macroeconomics and favorable industry structure, the financial services firm said in a note.
Favorable industry structure can be defined as lower leverage, industry consolidation, and measured price increases.
The brokerage has increased the target prices of major real estate stocks such as DLF, Prestige, Macrotech Developers, Godrej Properties and Oberoi Realty.
Morgan Stanley has an “overweight” rating on DLF and Prestige stocks. DLF’s price target has been raised from £549 per share to £770, while Prestige’s price target has been raised from £524 per share to £1,300.
Macrotech Developers and Godrej Properties are rated ‘Equivalent’. Macrotech Developers’ price target has been raised to ₹960 from ₹572 per share, while Godrej Properties’ target price has been raised to ₹2,050 from ₹1,354 per share.
In contrast, Morgan Stanley downgraded Oberoi Realty to ‘underweight’ but raised its price target on the stock to 1,180 pounds from 885 pounds per share.
Prashant Thakur, regional director and head of research at Anarock Group, said last month that the recent surge in real estate prices is a reversal from seven years of pre-COVID-19 stagnation, when the industry was flat and prices did not rise. Said to be part of the.
Although affordable housing (below Rs 40-45 million) continues to struggle, actual market activity is in the Rs 80-1.5 million range, mainly in the top seven cities, he said. Ta.
As of 10:12 am, DLF shares were trading 2.45% higher at ₱666.1 per share on the BSE and Macrotech Developers shares were trading 0.15% higher at ₱919.05 per share on the BSE. Ta. Godrej Properties shares were trading 0.37% higher at ₹1,936.4 on the BSE, while Oberoi Realty shares were trading 0.79% lower at ₹1,435.15 on the BSE.
(Editor: Shloka Badkar)