3 Midcap real estate stocks to buy with potential returns of up to 40%

Buy Call of Motilal Oswal

Store Current market price (Rs.) Target price
Limited prestige real estate projects 479 675
Sobha limited 710 850
Brigade Companies Limited 570 720
    Limited prestige real estate projects

Limited prestige real estate projects

Prestige Estate is a real estate company, one of the largest real estate development companies based in South India.
According to Motilal Oswal reports, “PEPL recorded 90% YoY growth in pre-sales in FY22 to over INR 100 billion and is targeting INR 120 billion in bookings in FY22. FY23. Based on its 60 million square feet of future project pipeline, including launches in Mumbai and NCR, we expect pre-sales to at least maintain the $100-120 billion execution rate. ‘INR over the next three to four years’.
We are initiating a hedge on the stock with a Buy rating and a SoTP-based TP of INR 675, implying a potential upside of 40%, according to Motilal Oswal’s latest report.

Sobha limited

Sobha limited

Sobha Limited is one of the leading property development companies in India. The company is engaged in the construction of commercial premises, housing projects, townships and other activities related to this field.

“SOBHA has one of the largest land reserves (~210msf) in the listed real estate space. Citing the upcycle opportunity, management is focused on valuing its land parcels to make them marketable and salable at short term.” Further, “We are initiating a hedge on the stock with a Buy rating and a TP of INR 850, implying 20% ​​upside potential.” says Motilal Oswal’s report.

Brigade Companies Limited

Brigade Companies Limited

Brigade Enterprises is one of the leading real estate development companies in South India. The company has produced more than 250 buildings totaling more than 70 minutes. Square feet of space developed in office, residential, retail and hospitality sectors in different cities across South India.

According to Motilal Oswal’s latest report, “Over the past four years, BRGD has grown all facets of its business through (a) a revamped residential strategy and (b) aggressive capital expenditure in its commercial business, which is now bearing fruit. We expect a further surge in residential activity as management monetizes its 35msf land bank over the next five to six years through a resumption of leasing. We have resumed hedging the stock with a Buy rating and a TP of INR 720, implying 27% upside potential.”

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