Top real estate companies of India | Business Upturn

Stock Market update: Sobha Ltd shares up by 2% on strong performance in Q3

Malvika Choudhary — Mon, 10 Jan 2022 06:04:22 +0000

Sobha Limited shares attained a growth of 4 per cent on the National stock exchange in opening deals on Monday after the real estate developer reported sturdy sales performance for the December quarter.

The company shares are valued at Rs 864.00 apiece with a rise of 1.36 per cent on NSE Sensex(+11.60) today at 11.14 IST. The Bengaluru based company said that it has acquired a sales volume of 1.32 million square feet (MSF), up 17% year-on-year (YoY) with the sale value at Rs 1,048 crores, up 18% year-on-year buy including its shares in joint development projects in its operational update. Despite the growth, sales declined to 2%. Average receipts on a per square foot basis rose by 4% sequentially but were flat as compared to Q3FY21.

Sales volume in the Bengaluru region was approximately 0.96 MSF, up 20% sequentially and 22% year-on-year. Bengaluru continued to be the apex market for the company, contributing 72% to the total sales volume in Q3FY22.

In its press release, they have already exceeded the sales volume achieved during FY2011. The company said that Gurugram, Pune and GIFT City also performed well during the quarter. It added that Gurugram’s sales volume grew by 97% in Q3FY22.

During the July-September period, Sobha achieved its best quarterly sales volume of 13.48 lakh square feet of super built-up area valued at Rs 1,030 crore. It rose as much as 10.36 per cent to hit a record high of Rs 976.70 after its profit tripled in the September quarter.

“Overall cash flow with significant collections from real estate business. With a focus on rapidly monetising its land bank and not expected to do significant investment in land, Sobha is expected to maintain such cashflow momentum and continue to deleverage (expected to surpass the target debt/equity of 1:1) going forward,” the domestic brokerage house said in a report on 10 January.

Sobha Limited (SL) is a leading real estate developer engaged in the business of construction development sale management & operation of all or any part of townships housing projects commercial premises and other related activities.

Lodha & Morgan Stanley to jointly invest ₹600 crore in warehousing business

Malvika Choudhary — Thu, 23 Dec 2021 05:47:51 +0000

Mumbai based real estate company Lodha Group will now be working hand in hand with an affiliate of Morgan Stanley real estate investing company to develop 1.9 million square feet at Palava Industrial and Logistic Park (PILP) near Mumbai. The deal aims to construct a 72-acre warehouse at PILP, which is presumed to entail an investment of Rs 600 crore.

Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management arm of Morgan Stanley. The Macrotech developers bid fair to be the project developer manager and will be accountable for leasing, project development, asset management and mission supervision.

“Our marquee acquisitions and key partnerships for PILP have helped us establish a solid track record in the logistics sector. Through this formidable collaboration, we will leverage our development expertise along with MSREI’s industrial know-how as we continue to expand and enhance this best-in-class industrial park. These are exciting yet crucial times for us as we expect more such strategic partnerships in the near future,” said Shaishav Dharia, CEO, Townships, and Rental Assets, Lodha Group.
Lodha Group is India’s number one real estate developer. Palava is one of the largest projects of Lodha and it claims it to be India’s number one smart city and PILP is the art of this 4500-acre smart city.

Vineet Sekhsaria, executive director and head, Morgan Stanley Real Estate Investing India, said, “We believe that Palava will soon become the most strategic location for logistics and industrial development in western India. Given excellent infrastructure with multiple connectivity routes to the city and upcoming trans harbour sea-link, Palava will have benefits, unlike any other location.”
In early 2018, Kotak Realty Fund, which had invested around Rs 540 crore in Palava from its $400 million offshore funds exited with around Rs 838 crore, at an IRR of 18%. As of 2019, Piramal Enterprises Ltd (PEL) and Ivanhoé Cambridge, a real estate subsidiary of CDPQ (Caisse de Dépôt et Placement du Québec) have made an equity investment of Rs 500 crore in the project.

DLF’s performance and growth expected to be highest in Q4

Govindraj Muttepawar — Tue, 15 Jun 2021 05:46:33 +0000

Real estate major DLF Ltd ended fiscal 2021 well, with impressive March quarter results. Its Q4FY21 pre-sales of ₹1,060 crore was an improvement of more than 200% from the corresponding quarter last year. This sharp improvement was aided by new launches and a favorable base. Consequently, annual booking for its residential segment in FY21 hit a multi-year high of ₹3,100 crore.

In a post-earnings conference call, its management said sales in Q1FY22 were impacted by the second wave of covid-19. However, it expects to maintain a sales trajectory upwards of ₹1,000 crore per quarter in the remainder of FY22 and in FY23. DLF eyes annual bookings of ₹4,000 crore in FY22 on the back of its strong launch pipeline.

DLF launched projects aggregating 1.5 million square feet (msf) in FY21. It plans to launch around 35msf more of projects, 8.3msf in FY22, 6.4msf in FY23, 7.2msf in FY24, and the rest beyond FY24, the management said. The launches will be spread across segments such as luxury, mid-income, and commercial, across Delhi, Noida, Chennai, and Chandigarh. Despite the stellar sales performance, the stock ended Monday’s session down 3.5% at ₹299 on the National Stock Exchange.

“Though DLF has an aggressive launch pipeline, declining occupancies in its commercial portfolio is a cause for concern. Retail rentals were also weak in FY21 and while the management is optimistic of a pick-up, it remains to be seen how that part pans out. Also, its net debt level is likely to remain at an elevated level given the kind of launches it has planned. The outlook for the sector is bleak for now, so bumper sales in immediate quarters is unlikely,” said an analyst with a domestic brokerage house, requesting anonymity. DLF’s net debt was ₹4,900 crore, at the end of the March quarter.

The leasing momentum in the commercial segment, which had begun to pick up in February-March, has again dampened because of the second wave of the covid-19 pandemic, the management said. For its office portfolio, occupancy was down to 89% in Q4FY21 from 91% in Q3FY21, as occupiers deferred leasing decisions, following the sudden spike in coronavirus cases. From the 1.6msf space that is likely to come up for re-leasing in FY22, renewals are expected to be 75–85%, the management said.

In the retail segment, lockdown and rental waivers led to rentals falling 46% year-on-year (y-o-y) to ₹280 crore in FY21. The DLF management expects rentals to hit ₹380-700 crore in FY22. In its luxury project, Camellias, out of a total 3.6msf area, around 1.3msf space is still to be sold, the management said. This project accounts for the bulk of its unsold inventory.

“Investors were primarily concerned about the company’s significant exposure to the luxury residential segment, which forms the bulk of its unsold inventory, wherein sales were tepid. We believe the rate of liquidation of inventory worth ₹6,000 crore will be a key trigger for the stock,” analysts at Edelweiss Securities Ltd said in a note.

In the last one year, the DLF stock has rallied 105%, outperforming the BSE Realty index, which has posted 82% returns in the same period. The run-up in the stock captures the positives of an improvement in the sector’s residential cycle, according to analysts. From now on, timely execution of launches and recovery in the commercial portfolio will be key monitorables.

Top 5 real estate companies in India by market value

Sanga Basu — Thu, 10 Sep 2020 08:18:33 +0000

Real estate industry is the second largest sector of Indian economy. The total size of real estate industry in India is approximately ₹1224000 crore. Let us look at some of the biggest pillars of this industry.

Here are the top 5 real estate companies of India by market value:-

1) DLF Limited:-

It is the largest real estate company in India in terms of total sales with the revenue of ₹ 7766 crore. It was founded in 1946. Now, after 74 years, DFL has residential, retail and commercial properties in 24 cities of 15 states of India.

2) Prestige Estates Projects Limited:-

Founded in 1986, it is the leading real estate company of Chennai. It had 54 on-going and 35 upcoming projects at the beginning of 2020 as reported. It has a revenue of ₹ 6518 crore.

3) NBCC India Limited:-

It was founded in 1960 as a civil engineering enterprise by the government of India. NBCC has imprinted its mark in 3 sectors of real estate. It focuses on developing Residential and Commercial inventories for Governments and the Public, executing landmark projects in diversified sectors, redevelopment Projects for Government and also working in a niche market and constructing Chimneys, Cooling Towers for Power Sector.

4) Indiabulls Real Estate Limited:-

This Chennai based real estate company mainly constructs luxurious residential and commercial properties. Some of its major works in Mumbai are: Indiabulls Centre, Indiabulls Finance Centre and in the residential segment – Indiabulls Sky and Greens Panvel. Indiabulls has a revenue of ₹ 5015 crore.

5) Brigade Enterprises Limited:-

Founded in 1986, this Chennai based real estate company has built many residential, commercial,retail hospitality and education sector properties across entire South India. It has worked in Bengaluru, Mysuru, Mangaluru, Hyderabad Kochi and of course, Chennai. The gross revenue of Brigade Enterprises is ₹2973 crore.