Jefferies remains optimistic about the Indian real estate sector, noting that it is in the fifth year of a property upcycle with residential demand still strong. Key observations and preferred stock recommendations underline the sector’s positive outlook.
Key Insights:
- Inventories at a record low: Inventories are near 14-year lows, highlighting robust demand and controlled supply.
- Sales growth outlook: Jefferies expects a 15%+ value sales growth, supported by increased ticket sizes that have doubled in five years.
- Office market recovery: Office markets are showing signs of recovery, driven by demand from GCC and Indian corporates.
- Financial stability: Strong balance sheets in leading real estate firms provide further support to valuations.
Preferred Picks:
- DLF: Maintains a Buy rating with a target price of ₹1,000.
- Godrej Properties: Maintains a Buy rating with a target price of ₹3,750.
- Macrotech Developers: Maintains a Buy rating with a target price of ₹1,650.
Jefferies’ analysis reflects a favorable market environment for the real estate sector, bolstered by strong fundamentals and strategic market recovery trends.
Disclaimer: This content is for informational purposes only. Please consult a financial advisor before making investment decisions.
