3 Stocks To Buy: ICICI Securities’ Top Picks From The Real Estate Sector

ICICI Securities has a buy call on the stocks of Sobha Developers, Mahindra Lifespace and Phoenix Mills from the real estate sector. For Phoenix Mills the brokerage has revised its target upwards.

Buy Phoenix Mills with a price target of Rs 1851

"We retain our BUY rating with a revised target price of Rs 1,851 per share (earlier Rs 1,712) as we roll forward to Mar'24E NAV and retain our 20% premium to NAV of Rs 1,542 per share considering opportunities from office capex and new malls. Key risks are fresh Covid waves impacting consumption and fall in mall occupancies and rentals," the brokerage has said.

Buy Mahindra Lifespace Developers with a target price of Rs 565

According to ICICI Securities, FY23 was a breakout year for Mahindra Lifespace Developers as it clocked record residential sales bookings of Rs 18.1 billion (up 76% YoY) led by 3.2msf of new launches. "With the new MD and CEO, Amit Kumar Sinha taking over from May'23, the company's focus remains on achieving its medium-term guidance of Rs 25 billion of residential sales by FY25. With the company having 9 planned launches in FY24 having a GDV of Rs 35-40 bn (including Kandivali, Mumbai in Q2FY24), we estimate FY24E and FY25E sales bookings of Rs 23.1 bn and Rs 27.1 billion, respectively. We retain our BUY rating on Mahindra Life with a revised target price of Rs 565 per share (earlier Rs 488) which includes a premium to NAV of 50% considering the strong business development pipeline," the brokerage has said.

Target price of Rs 891 on the stock of Sobha

ICICI Securities has maintained a buy call on the stock of Sobha with a price target of Rs 891 per share. "If the approvals for all the planned launches come through, then the company is targeting 15-20% growth in gross sales bookings for FY24 (we model for sales bookings of Rs 57.8 bn in FY24E and Rs 61.1 bn in FY25E). Another key positive in FY23 was the company's net debt levels reducing by Rs 7.0 bn to Rs 16.4 bn (net D/E of 0.66x). We maintain our BUY rating with an unchanged SOTP based target price of Rs 891 per share," the brokerage has said.

Disclaimer

The above article is for information only. The stock recommendations are picked from the brokerage report of ICICI Securities. This is not a recommendation of either Greynium Information nor the author. Neither Greynium Information Technologies, nor the author should be held responsible for losses caused based on a decision from the article.