Jefferies is bullish on realty stocks as strong sales likely to boost presale growth to 25% in FY25

Global Brokerage Jefferies turned heads in the real estate space as the busy season started on a positive note. The commercial index in the last seven sessions has increased about 11 percent and is now about 10 percent from the peak of 1,157.35 marked on June 18 this year.

Still, underlining his optimism for the sector, Jefferies noted that residential sales showed an increase led by the holiday season as sales rose to a 6-month high.

The brokerage stressed that value sales are trending above 20 percent helped by both mix and prices.

According to Jefferies, major new launches are under way or planned by major listed players in the second half of the 2024-25 financial year.

An optimistic view of real companies

After a weak Q2, the brokerage expects strong sales to help developers realize pre-sales growth of 25 percent in FY25. So, between strong new launches and a healthy pipeline, it may emerge as a key factor for companies that continue to sell.

Stocks for sale

So amid the recent excitement and festive cheer, a global trader likes or suggests buying 2 major stocks of DLF and Macrotech Engineers; and 1 stock of midcap Godrej Properties.

Expect a positive drop to help listcos post 25% growth in pre-FY25 sales, despite a weak Q2.

He prefers Godrej Properties, Lodha and DLF