Prestige Group

Morgan Stanley Bullish on DLF, Prestige, Sobha

Wednesday 13th January, 2021

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Morgan Stanley Bullish on DLPF, Prestige, Sobha Morgan Stanley Sees a strong recovery in the offing fOr residential volumes within the property sector led by pent-up demand, significant improvement in affordability and new launch pipeline. The brokerage said it prefers developers ver real estate investment trusts (REITs) and is overweight on DLF. Prestige Estates Projects and Sopha. It has an underweight rating on Godrej Properties and equalweight on Oberoi Realty. Tne BSE Reatty index last year Saw an extended period of losses compared to the benchmark and hit its 52-week low in May while Sensex started recOvering in March. The BSE Realty index has surged 112% from its 52-week low of 1259 on May 19, 2020. Sensex has recovered over 90% from its March 2020 lows. Morgan Stanley has downgraded Embassy REIT and Mindspace REIT to equalweight from overweight and cut target price on Embassy REIT ty 12%. Volumes in the mid-income and affordable segments are likety to be better than IUxUry. We expect VOlUme recovery across metros, including Bengaluru, Greater Mumbai and Gurugram," said Morgan Stanley. Our Bureau WINN NN NN NN NN A A NN NN MN MA NI UO UU MUU NU UN MI ML MN MU MN UM NNN MN MA MN NN NN MY ML UU NL ML MA NO VO MU MN UN NL ML ML UMN ML HA MLN ML NN MA NU NA MA MUN UL NL NL MI MLM INIT DLF target price Dy 9%, Morgan Stanley DLF has laid out plans Said Prestige has a balanced portfolio of to launch 35-40 million residential and commercial assets. Planned Square feet of new projNew launches in Bengaluru, Chennal, Noida ects that have a revenue and Mumbal, along with ongoing and potential of 36,000 completed unsold inventory, provide good crore to 40,000 crore monetisation visibility and the company's over the next few years, valuations appear inexpensive at a 58% said Morgan Stanley, discount to forward net asset value, It said. ralsing target price on the stock by 13%. The firm SOBHA said DLF has altered its Strategy to include several middle-income projects Potential Gain (%): 479.59% In the product mix and Morgan Stanley, which has raised target Sales will also begin with price on Sobpha by 33%, said the company Is the start of construction. positioning Itself to benefit from upcoming Morgan Stanley said an residential demand with Its current improving physical market | projects and Upcoming new launches. and demand consolidation | Sobha continues to diversify geographically should benefit DLF and to non-Bengaluru markets and has a strong help double quarterly contractual business to augment cash fIOWs, pre-sales to 1,000 crore said Morgan Stanley. Valuation Is In FY22. inexpensive at 31% discount to NAV, It said. CMP (7): 47 5.55 Target Price (r): 573