Nuvama’s Top Real Estate Picks: 3 Stocks to Watch in 2023
Nuvama Institutional Equities has identified three promising real estate companies: Macrotech Developers, Phoenix Mills, and Sobha. This article delves into the reasons behind the brokerage's bullish stance on these stocks, highlighting their growth prospects and key financial metrics.
Real EstateStock PicksNuvamaMacrotech DevelopersPhoenix MillsReal Estate NewsJul 09, 2025
Let’s take a look at the reasons why the brokerage is bullish on these stocks.
Nuvama on Macrotech Developers: Buy with a Target Price of Rs 1,619
Nuvama has maintained a Buy rating on Macrotech Developers with a target price of Rs 1,619. According to the brokerage, Macrotech Developers posted a 10% year-on-year jump in Q1FY26 pre-sales at Rs 44.5 billion, despite some early quarter disruptions due to geopolitical tensions. While sequential growth dipped slightly, collections rose 7% YoY to Rs 28.8 billion. The company added five projects during the quarter with a gross development value (GDV) of Rs 227 billion, already 91% of its full-year guidance.
“We remain sanguine about Lodha’s growth prospects and believe it remains on track to achieve its FY26E pre-sales guidance of Rs 210 billion,” noted Nuvama. The firm also highlighted that despite a Rs 10.9 billion increase in net debt, the leverage ratio remains comfortably below the 0.5 times net debt-to-equity ceiling.
Nuvama on Phoenix Mills: Buy with a Target Price of Rs 1,907
Nuvama has reiterated a Buy rating on Phoenix Mills with a target price of Rs 1,907. Phoenix Mills (PML) has emerged as a strong player in retail-led real estate, supported by a 12% YoY rise in retail consumption in Q1FY26. According to the brokerage report, PML’s performance was driven by its malls in Lucknow, Indore, Mumbai, and Ahmedabad.
Nuvama believes that Phoenix Mills' leadership in retail real estate and the structural urban consumption story make it a “long-term structural growth story.” In Q1, the company also clocked residential pre-sales of Rs 1.7 billion, more than doubling YoY.
“Entry in new cities and operationalisation of planned assets are some of the stock triggers that we expect to play out over the next few years,” added the report.
Nuvama on Sobha: Buy with a Target Price of Rs 1,784
Nuvama has assigned a Buy rating to Sobha with a revised target price of Rs 1,784. For Sobha, Q1FY26 was a record-breaking quarter with its highest-ever quarterly pre-sales of Rs 20.8 billion, up 11% YoY. Despite a 10% YoY fall in realisation at Rs 14,395/sq ft, the company launched two new projects totalling 1.6 million sq ft, including its maiden project in Greater Noida and expansion at Kochi’s Marine One.
“Given a robust launch pipeline, entry into newer geographies and focus on business development, sales are expected to revive handsomely in FY26E,” according to the brokerage.
Frequently Asked Questions
What is Nuvama's Buy rating on Macrotech Developers?
Nuvama has maintained a Buy rating on Macrotech Developers with a target price of Rs 1,619. The company posted a 10% year-on-year jump in Q1FY26 pre-sales at Rs 44.5 billion and added five projects with a gross development value (GDV) of Rs 227 billion.
Why is Nuvama bullish on Phoenix Mills?
Nuvama is bullish on Phoenix Mills due to its strong performance in retail consumption, which rose 12% YoY in Q1FY26. The company's leadership in retail real estate and the structural urban consumption story make it a long-term growth story. In Q1, Phoenix Mills also clocked residential pre-sales of Rs 1.7 billion, more than doubling YoY.
What is Nuvama's target price for Sobha?
Nuvama has assigned a Buy rating to Sobha with a revised target price of Rs 1,784. Sobha had a record-breaking quarter in Q1FY26 with its highest-ever quarterly pre-sales of Rs 20.8 billion, up 11% YoY. The company launched two new projects totalling 1.6 million sq ft.
What are the key growth drivers for these real estate companies?
The key growth drivers for these real estate companies include strong execution, rising demand, and strategic expansions. Macrotech Developers is focused on robust project launches, Phoenix Mills is expanding its retail footprint, and Sobha is entering new geographies and developing new projects.
What is Nuvama's outlook for the real estate sector?
Nuvama remains optimistic about the real estate sector, particularly for companies like Macrotech Developers, Phoenix Mills, and Sobha. The brokerage believes these companies are well-positioned for long-term growth due to their strong execution, rising demand, and strategic expansions.
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