According to broking house, the worst of sector specific policy drags is behind and the sector is now entering in a structured growth phase.
Shares of Godrej Properties and Oberoi Realty rose 2-5 percent intraday Tuesday as research house Deutsche Bank has initiated buy rating on stocks with a target of Rs 1,000 and Rs 650 respectively.
According to broking house, the worst of sector specific policy drags is behind and the sector is now entering in a structured growth phase.
The cyclical recovery momentum is beginning to turn supportive, it added.
The demand-supply dynamics is improving in commercial segment, while demand-supply dynamics gradually bottoming out in residential property market.
The sector is under-owned by domestic mutual funds which is beginning to reverse now.
The valuations appear to be expensive as they reflect cyclical lows in activity momentum, while it does not price in the potential cyclical acceleration.
At 14:50 hrs Oberoi Realty was quoting at Rs 526.35, up 4.69 percent and Godrej Properties was quoting at Rs 720, up 0.64 percent on the BSE.
Posted by Rakesh Patil