The brokerage firm Nuvama Institutional Equities has reiterated its bullish stance on select players in the sector, assigning a ‘Buy’ rating to three real estate companies – Macrotech Developers, Phoenix Mills, and Sobha.
According to the brokerage report, these companies are positioned for long-term growth, driven by strong execution and rising demand.
Let’s take a look at the reasons why the brokerage is bullish on these stocks-
Nuvama on Macrotech Developer: Buy with a target price of Rs 1,619
Nuvama has maintained a Buy rating on Macrotech Developers with a target price of Rs 1,619. According to the brokerage, Macrotech Developers posted a 10% year-on-year jump in Q1FY26 pre-sales at Rs 44.5 billion, despite some early quarter disruptions due to geopolitical tensions.
While sequential growth dipped slightly, collections rose 7% YoY to Rs 28.8 billion. The company added five projects during the quarter with a gross development value (GDV) of Rs 227 billion, already 91% of its full-year guidance.
“We remain sanguine about Lodha’s growth prospects and believe it remains on track to achieve its FY26E pre-sales guidance of Rs 210 billion,” noted Nuvama.
The firm also highlighted that despite a Rs 10.9 billion increase in net debt, the leverage ratio remains comfortably below the 0.5 times net debt-to-equity ceiling.
Nuvama on Phoenix Mills: Buy with a target price of Rs 1,907
Nuvama has reiterated a Buy rating on Phoenix Mills with a target price of Rs 1,907.
Phoenix Mills (PML) has emerged as a strong player in retail-led real estate, supported by a 12% YoY rise in retail consumption in Q1FY26. According to the brokerage report, PML’s performance was driven by its malls in Lucknow, Indore, Mumbai, and Ahmedabad.
Nuvama believes that Phoenix Mills leadership in retail real estate and the structural urban consumption story make it a “long-term structural growth story.” In Q1, the company also clocked residential pre-sales of Rs 1.7 billion, more than doubling YoY.
“Entry in new cities and operationalisation of planned assets are some of the stock triggers that we expect to play out over the next few years,” added the report.
Nuvama on Sobha: Buy with a target price of Rs 1,784
Nuvama has assigned a Buy rating to Sobha with a revised target price of Rs 1,784. For Sobha, Q1FY26 was a record-breaking quarter with its highest-ever quarterly pre-sales of Rs 20.8 billion, up 11% YoY.
Despite a 10% YoY fall in realisation at Rs 14,395/sq ft, the company launched two new projects totalling 1.6 million sq ft, including its maiden project in Greater Noida and expansion at Kochi’s Marine One.
“Given a robust launch pipeline, entry into newer geographies and focus on business development, sales are expected to revive handsomely in FY26E,” according to the brokerage.