Top Real Estate Stocks to Watch: Brigade Enterprises, Prestige Estates, and More
Several top brokerages have maintained a 'Buy' rating on real estate companies like Brigade Enterprises, DLF, Godrej Properties, and Prestige Estates, citing robust growth visibility and strategic developments.
Real EstateStock MarketInvestmentRealty SectorBrokerage RatingsReal EstateJun 26, 2025
MOFSL (Motherson Financial Services Limited) projects a compounded annual growth rate (CAGR) of 21% and 36% in presales and collections over the fiscal years 2025-2027. Healthy collections are expected to generate operating cash flow of Rs 1.4 lakh crore cumulatively over FY25-27 for its coverage real estate companies. This should help companies maintain a net debt-to-equity ratio below 0.4 times, with many expected to achieve a net cash status.
In its coverage universe, MOFSL maintained a 'Buy' rating on companies such as Brigade Enterprises, DLF, Godrej Properties, Kolte-Patil Developers Ltd, Macrotech Developers Ltd, Prestige Estates Projects Ltd, Signatureglobal (India) Ltd, Sobha, and Sunteck Realty. It has a 'Neutral' stance on Mahindra Lifespace Developers Ltd, Oberoi Realty, and Phoenix Mills Ltd. MOFSL's preference lies with Macrotech, Prestige, and Signature due to their robust growth visibility, geographical diversification, and ability to generate multi-asset income.
Brokerage Nuvama reports a mixed start for the calendar year 2025, with a decline in housing sales by value in March and April before improving by 4% year-on-year (YoY) in May. Launches remained flat YoY but saw a 22% month-on-month (MoM) drop. The unsold inventory is stable at 18 months, with sales volumes decreasing by 7% YoY but increasing by 2% MoM, potentially indicating an end to the downward trend in sales volumes noted after May 2024. Nuvama anticipates healthy sales momentum for organised developers, aided by a strong launch pipeline and RBI rate cuts, although industry-wide soft volumes remain a concern. The brokerage identifies Prestige Estates and Brigade Enterprises as its top picks, both rated 'BUY'.
According to Elara Securities' Biju Samuel, the Indian realty sector has significant potential for outsized returns, stemming from a decadal breakout in late 2023 that promises long-term gains. Samuel highlights the successful test of this breakout at recent lows, rekindling optimism for the sector's secular growth. The historical context shows that the Indian realty boom peaked parabolically in 2007, followed by a market crash in 2008. After 16 years, the Nifty Realty Index returned to mid-2024 highs, with many high beta stocks peaking alongside the election verdict. The subsequent lows retraced half of the previous gains, suggesting a potential for a further sectoral boom.
The recent rally in DLF is seen as a response to an oversold bull market condition. Samuel notes that DLF's retracement of 61.8% of post-COVID gains positions it for a 23% outperformance, with further visibility towards a 45% gain based on channel targets. Prestige Estates Projects also experienced a significant breakout in November 2023, marking the end of a 13-year base and a launchpad for multiple long-term bull market legs. The recent bottom at the decadal breakout point indicates a potential 30% medium-term and 50% long-term outperformance.
Godrej Properties joins DLF and Prestige Estates in the real estate momentum, with an oversold condition suggesting attractiveness at current levels, Samuel said. The relative ratio shows a long-term trendline support, with the next inflection point 12% away, and medium-term outperformance expected to open up to 33%. Overall, brokerages project a promising future for India's real estate sector, supported by strategic developments and market conditions. Companies with strong geographical diversification and balanced residential and commercial portfolios stand to benefit the most from the anticipated growth.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Frequently Asked Questions
Which real estate companies are top picks according to MOFSL?
MOFSL maintains a 'Buy' rating on companies such as Brigade Enterprises, DLF, Godrej Properties, Kolte-Patil Developers Ltd, Macrotech Developers Ltd, Prestige Estates Projects Ltd, Signatureglobal (India) Ltd, Sobha, and Sunteck Realty.
What is the projected CAGR for presales and collections in the real estate sector?
MOFSL projects a compounded annual growth rate (CAGR) of 21% and 36% in presales and collections over the fiscal years 2025-2027.
Why does Nuvama see healthy sales momentum for organised developers?
Nuvama anticipates healthy sales momentum for organised developers, aided by a strong launch pipeline and RBI rate cuts, although industry-wide soft volumes remain a concern.
What is the historical context of the Indian realty sector's performance?
The Indian realty boom peaked parabolically in 2007, followed by a market crash in 2008. After 16 years, the Nifty Realty Index returned to mid-2024 highs, with many high beta stocks peaking alongside the election verdict.
What is the potential for DLF's stock performance?
Samuel notes that DLF's retracement of 61.8% of post-COVID gains positions it for a 23% outperformance, with further visibility towards a 45% gain based on channel targets.
Related News Articles
India's Rise to Realty Prominence: A Billion-Dollar Boom
India is accelerating to become the real estate capital of Asia, with a total valuation of Rs 14.2 trillion among the top 100 realty companies.
Maharashtra Cabinet Renames Pune Airport After Sant Tukaram Maharaj
The Maharashtra Cabinet has approved a proposal to rename Pune airport after the 17th-century Warkari saint and poet, Sant Tukaram Maharaj.
The Downfall of Real Estate Moguls: Alexander Brothers Arrested in Miami
In a shocking turn of events, the renowned real estate moguls, the Alexander Brothers, were recently arrested in Miami. This news has sent ripples through the business community, leaving many to wonder what led to their downfall.
Luxury Homes, Toxic Air: The Urban Pollution Paradox in India
Nithin Kamath, a prominent real estate analyst, highlights the growing concern of urban pollution in major Indian cities like Delhi, Mumbai, and Bengaluru. Despite seeing a surge in luxury real estate, these cities struggle with alarming levels of air pol
Tragic Incident: Two Workers Killed, One Injured as Slab Collapses in Chikhla Mines
A devastating slab collapse in the Chikhla mines of Manganese Ore (India) has resulted in the death of two workers and left one injured. The incident has raised serious concerns about safety protocols in the mining industry.
Women Home Buyers Witness 14% Surge in 2024: Report
A recent report by Square Yards, titled 'Key Holders of Change - Women Driving Real Estate Growth and Transformation,' reveals a significant 14% increase in women homebuyers in 2024.