Shares of real estate companies have fared fairly well in the last one year, with all the stocks in the Nifty Realty index, except HDIL, recording gains. However, only two stocks from the index, Unitech (5.75%) and Sobha (1.2%) figure in the monthly gainers list.
Indiabulls Real Estate, which has gained close to 82% in the last one year, has shed about 13.5% in the past one month. Godrej Properties, up 72% in the last one year, has given up 4.7% since mid March 2018.
Sobha has climbed 52% in the last one year, with the company reporting strong sales growth in the past couple of quarters. Phoenix has jumped 40% since mid April 2017 and Oberoi Realty has added 34% during the same period.
Prestige (32%), DLF (31%), Unitech (13.2%) and Brigade Enterprises (6%) have also made progress in the last one year.
The Nifty Realty index, after adding nearly 40% in the year ended March 2018, has shed about 6% in the past one month.
HDIL, due largely to weak results and news about the financial woes of its subsidiary Guruashish Constructions, has been struggling for a long time. In the October - December 2017 quarter, the company saw a 52.86% decline in consolidated net profit to Rs 18.96 crore, from the year-ago quarter. Total income declined 13.33% in the third quarter of financial year 2017-18.
The company's subsidiary Guruashish Constructions has been accused of defrauding state housing body MHADA, and hundreds of people in line to own low-income houses.
HDIL, which is up 0.6% at Rs 41.30 today, has lost 6.3% in the last one month and more than 51% in the last one year. The tock had touched a high of Rs 101.80 in May 2017 and a low of Rs 38.10 on 2 April 2018.
A recent report from Deutsche Bank said that the worst of the policy-specific drags were behind the Indian real estate companies. The demand-supply dynamics in the commercial segment has improved for developers and a gradual bottoming out is being seen in the residential property market, the bank said in its note.