Top 5 Best Real Estate Stocks With Solid Returns In The Past Year

Updated: Monday, July 12, 2021, 13:30 [IST]

The real estate sector is predicted to grow as the number of COVId 19 cases decreases in the second wave, showing a solid recovery from the rigorous lockdown enforced in the second quarter due to the spread of COVID-19 across the country.

The NIFTY Realty Index is designed to reflect real estate businesses' behavior and performance. The index is made up of ten firms that are listed on India's National Stock Exchange (NSE). After agriculture, the real estate sector creates the second-highest number of jobs in India. By 2030, India's real estate market is anticipated to be worth $1 trillion. By 2025, it will account for 13% of the country's GDP.

The NIFTY Realty Index is calculated using the free-float market capitalization approach, with the index level reflecting the entire free-float market value of all the companies in the index compared to a specific base market capitalization value.

Sobha

For the quarter ended June 2021, Sobha achieved a total sales volume of 895,539 square feet of super built-up area valued at Rs 682.9 crore (Q1FY22). In comparison to Q1-21, overall sales volume, sale value, Sobha share of sale value, and total average price realisation have increased by 38 percent, 40 percent, 45 percent, and 2 percent, respectively. For the past three years, the company has grown its revenue by 19.77 percent.

In the last five years, the company has maintained effective average operating margins of 21.30 percent. Sobha has a return on equity (ROE) of 13.26% (greater is better). Sobha has a D/E ratio of 1.31, indicating that the company has a low debt-to-capital ratio.
The company's cash flow is well-managed, with a CFO/PAT ratio of 1.05.

Brigade Enterprises

Its stock price currently is Rs 314. 5. The company's current market capitalization is Rs 7205.36 crore. The company reported gross sales of Rs. 18493.3 crores and a total income of Rs. 19935 crores in the most recent quarter. For the past three years, the company has shown a good profit growth of 16.73 percent. Brigade Enterprises Ltd has gained 11.81 percent in the last month, outperforming the S&P BSE Realty Index index by 1.91 percent and the SENSEX by 1.48 percent.

In the last five years, the company has maintained an effective average operating margin of 27.06 percent.
The company's cash flow is well-managed, with a CFO/PAT ratio of 1.23. Brigade Enterprises has an Inventory Turnover Ratio of 0.61, indicating that the company's inventory and working capital management are inefficient.

DLF

Only 4.53 percent of trading sessions in the last 14 years had intraday drops of more than 5%. The stock returned 53.68 percent over three years, compared to 46.03 percent for the Nifty 100. For the past three years, the company has shown a good profit growth of 55.99 percent.

In the last five years, the company has maintained effective average operating margins of 33.47 percent.
The PEG ratio of the company is 0.35. DLF's current year dividend is Rs 2 with a yield of 0.69 percent. DLF Ltd., founded in 1963, is a Large Cap business in the Real Estate industry with a market capitalization of Rs 73,925.18 crore.

Oberoi Realty

With a solid interest coverage ratio of 49.34, the company is in good shape.
In the last five years, the company has maintained an effective average operating margin of 54.52 percent.
With a current ratio of 5.05., the company has a solid liquidity position. Only 2.49 percent of trading sessions in the last ten years had intraday gains of more than 5%. Over a three-year period, the stock generated a 40.39 percent return, while Nifty Realty generated a 34.57 percent return. Oberoi Realty reported revenue growth of 37.12%, which is reasonable given its expansion and performance. Oberoi Realty's operating margin for the current fiscal year is 58.26 percent.

Sunteck Realty

Over a three-year period, the stock returned -18.38 percent, compared to Nifty Realty, which returned 34.57 percent. Sunteck Realty Ltd., founded in 1981, is a Real Estate-focused Mid Cap business with a market capitalization of Rs 4,801.74 crore. In the last five years, the company has maintained an effective average operating margin of 55.65%.
With a current ratio of 2.61, the company has a strong liquidity position. With a promoter share of 67.15 percent, the corporation has a large promoter base.

Sunteck Realty's current year dividend is Rs 1.50, with a yield of 0.45 percent. Sunteck Realty's operating margin for the current fiscal year is 33.82 percent.

5 Best Performing Realty Stocks on NSE With Solid Returns In The Past Year

Company	LTP in Rs.	1 year in %
Sobha	552.90	128.62
Brigade Enterprises	315.05	119.16
DLF	298.85	96.62
Oberoi Realty	671.55	80.99
Sunteck Realty	331.55	69.80

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