JM Financial initiates coverage on 5 real estate stocks, expects ‘home-run’ to continue
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Expecting the growth momentum to continue in FY25 and favouring developers with a history of timely launches and strategic business development, domestic brokerage firm JM Financial initiated coverage on DLF, Keystone, Macrotech, Oberoi Realty and Sobha. FY24 was the best-ever year for absorption across residential real estate with pan-India sales crossing a billion square feet mark. Since FY21, pre-sales in the top 7 markets have largely been ahead of new launches, leading to a sharp reduction in inventory levels to 11 months. Among the listed players, Godrej, Prestige, Signature and Brigade delivered very strong growth in FY24. In terms of unsold inventory, the industry is at multi-year lows and new launches continue to see a strong response. “We expect this momentum to continue in FY25E, and are building in the market growth of 18% (volume growth of 12% and 6% escalation in prices) and a moderate increase in supply, which should be in ...