The year 2018 looks promising when we talk about the realty stocks. Until now the investors never wanted to invest in the realty stocks due to its volatility and not fetching good and desirable returns. In spite of suffering a negative CAGR during the financial year 2012~16 where the Nifty Realty Index was at -13% CAGR return, Nifty had started gaining grounds in the year 2017. The reasons for the improvement in the index was cited to be enhancement in the domestic scenario. The government also left no stone unturned as it launched various initiatives like REIT.
There have been some stocks that have given around 24% return in the H1FY18, as per the latest share market news. Talking about the top 5 realty stocks in 2018, the list goes like this
- Indiabulls Real Estate Ltd.
- Godrej Properties Ltd.
- Unitech Ltd.
- Prestige Estate Projects Ltd.
- And, Phoenix Mills Ltd.
A major gainer, Indiabulls Real Estate Ltd [IBREL], was able to achieve a whopping 153% gain in the last two quarters. Indiabulls Real Estate Ltd, which is a real estate arm of Indiabulls Financial Services [IBFSL], aims to have a development in the residential properties. They focus on the top cities like NCR, Mumbai and Chennai. They also focus on the rental of commercial properties. They have major development projects in the city of Mumbai. If we come to the exact CAGR in the past 3 years, it has been at 20%.
Godrej Properties Ltd is another proud name on the list. Quite popular and famous, Godrej Properties Ltd is a trusted name, that works best in the realty market. In the H1FY18, the Godrej stock has achieved 54% growth. Godrej properties share price has been impressive. Godrej Properties is from Godrej Group and is actively involved in the construction and real estate development business. The company is mainly into developing the residential property, commercial property, and township projects all across in India. The company is present nationally though it chiefly concentrates more on the top cities like Mumbai, which holds 56% of the total revenue of the year 2017, Del-NCR, Bangalore, and Pune.
Unitech Ltd is another worthwhile addition. The company’s stock has grown by 35%in the first half of FY18. The company has a diverse product line. It focusses on the residential property, commercial property, Special Economic Zones [SEZs], IT Parks, industrial parks, logistic parks, hospitality sector, retail and entertainment projects.
Prestige Estate Projects Ltd boasts of having 25% growth in the first half of the financial year 2018. The company is better known in South India. They also have a diversified segment like Residential, Commercial, Retail, Hospitality and Real estate services. The Company have had its projects in the south cities of Bengaluru, Chennai, Kochi, Hyderabad and Mysuru. The projects like Prestige Shantniketan and UB City in Bangalore are the most successful ones.
Phoenix Mills Ltd has been a gainer too with 24% jump in the first half of the FY18. The company is into the development of the large-scale, mixed-format retail development in the country. The most well-known malls in India, High Street Phoenix [HSP] in Parel, Mumbai, is a successful project of the company.
Note – This is based on personal analysis and investing should be done based on your secondary research.