The real estate sector is all set to pick up post the second wave and the buzz over realty stocks is growing. After a strict lockdown, the cases have come down as well.
Nifty Realty Index is an important indicator of the real estate business for investors. Moreover, 10 firms from the NSE form this index. Next to agriculture, the real estate sector employs more people.
By 2030, the real estate sector will be worth $1 trillion. Also, by 2025 it will account for almost 13% of India's GDP. We have brought 5 realty stocks that you must consider for investment in this article. Let's begin!
What is Nifty Realty Stocks Index?
It is an index that reflects the performance of 10 realty companies listed on the NSE. Here the level of the index indicates the float market value of all the stocks present in the index, relative to the base market cap value.
Moreover, the NIFTY realty stocks index is used for benchmarking of portfolios, in the launch of index funds, ETF's, etc.
Top 5 Realty Stocks in India 2021
Here is thus a list of the top 5 realty stocks in India worth investing in 2021,
| Name of Company | LTP in Rs. | 1 Year in % | ||
| Sobha | 552.90 | 128.62 | ||
| Brigade Enterprises | 315.05 | 119.16 | ||
| DLF | 298.85 | 96.62 | ||
| Oberoi Realty | 671.55 | 80.99 | ||
| Sunteck Realty | 331.55 | 69.80 |
Sobha Realty Stock
In the quarter which ended June 2021, Sobha realty achieved a total sales volume of 895,539 square feet of super built-up area. Moreover, it was valued at Rs 682.9 crore (Q1 FY22).
Also, compared with Q1 of FY 22, the following figures have shown an increase,
Overall sales volume is up by 38%,
The sale value is up by 40%,
Sobha share of sale value is up by 45%,
and lastly, the total average price realization is up by 2%.
Moreover, over the past 3 years, the company has a revenue increase of 19.77%.
For the last 5 years, Sobha realty has maintained an effective average operating margin of 21.30%.
Also, its ROE is 13.26% while its D/E ratio is 1.31 that shows it's low on debt.
Lastly, its CFO/PAT is 1.05. All in all, Sobha realty stocks are worth your consideration.
Brigade Enterprises Realty Stock
Its current share price is Rs 317.10 while its current market cap is Rs 7205.36 crore. Also, their gross sales were Rs 18493.3 crores and the total income was 19935 crores, for the last quarter. Past 3-year profit growth stands at 16.73%.
Moreover, Brigade Enterprises Ltd has gained 11.81% in the last month. Thus, it is 1.91% more than S&P BSE Realty Index and 1.48% more than the Sensex.
For the last 5 years, Brigade realty has maintained an effective average operating margin of 27.06%. Also, its CFO/PAT is 1.23 which means their cash flow is well balanced.
Finally, its inventory turnover ratio is 0.61 which shows its inventory is below par and needs serious work.
DLF Realty Stock
A known name in the realty business, the stock gave 53.68% returns for 3 years while 46.03% for Nifty 100. Moreover, in the past 3 years profit growth has been 55.99%, which is great.
For the last 5 years, DLF realty has maintained an effective average operating margin of 33.47%.
PEG ratio is 0.35.
Also, presently in 2021, the dividend is Rs 2 with a yield of 0.69%.
Finally, it has a market cap of Rs 73,925.18 crore.
Oberoi Realty
The company's interest coverage ratio is 49.34, thus showing that it is in good health.
For the last 5 years, the Oberoi realty has maintained an effective average operating margin of 54.52%.
Also, the current ratio of 5.05 shows that its liquidity position is good.
For a 3 year period, the stock gave 40.39% return while Nifty realty gave 34.57% return.
Lastly, its revenue growth is 37.12%, which is decent given its expansion and performance.
Sunteck Realty
For a 3 year period, the stock gave -18.38% return while Nifty realty gave 34.57% return.
Moreover, it was founded in 1981 and has a market cap of Rs 4801.74 crore.
For the last 5 years, Sunteck Realty has maintained an effective average operating margin of 55.65%.
Also, their current ratio is 2.61, showing their liquidity is good.
The company's promoter share is 67.15%, having a large promoter base.
Finally, the current year's dividend is Rs 1.50 and a yield of 0.45%, while the operating margin has been 33.82%.
Conclusion
The realty stocks index is a good indicator of the performance and health of the real estate sector in India.
It has been predicted to grow in the coming times, and contribute to almost 13% of the country's GDP.
It is worth your investment, as the sector is slated to make a great rise in the coming times.
The above-mentioned 5 companies are the best performing in this space with proven track records.
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