In a fresh update for investors navigating the ever evolving real estate sector, Nuvama Institutional Equities has reaffirmed its confidence in three standout names. The brokerage has issued a buy rating on Macrotech Developers, Phoenix Mills, and Sobha, citing strong performance metrics and expansion plans that align with rising demand across India’s real estate market. With India’s property sector seeing a resurgence post pandemic, these companies are emerging as well positioned leaders with credible growth stories.
Macrotech Developers, known by its brand name Lodha, continues to impress investors with its ability to generate consistent pre sales and add high value projects to its portfolio. In the first quarter of FY26, the company recorded a 10 percent year on year increase in pre sales, amounting to Rs 44.5 billion. This performance came despite early quarter challenges due to geopolitical disruptions. Collections also rose by 7 percent year on year to reach Rs 28.8 billion, signaling strong buyer confidence and healthy cash flow. What stood out further was the addition of five new projects during the quarter, boasting a gross development value of Rs 227 billion. This represents 91 percent of the company’s full year target already achieved in just one quarter. Despite a Rs 10.9 billion increase in net debt, the company’s financial health remains solid, with its leverage well below the 0.5 times net debt to equity ceiling. Based on these factors, Nuvama has given Macrotech Developers a target price of Rs 1,619, suggesting significant upside for investors who enter at current levels.
Phoenix Mills, one of the few players that dominate India’s retail led real estate segment, also remains a top choice. The company witnessed a 12 percent increase in retail consumption during the first quarter of FY26, with strong footfalls and sales across its flagship malls in cities such as Mumbai, Lucknow, Indore, and Ahmedabad. Nuvama’s bullish outlook is driven by Phoenix Mills' sustained leadership in the retail space and its ability to benefit from India’s evolving urban consumption trends. The firm has also expanded into residential real estate, clocking Rs 1.7 billion in pre sales during the same quarter, a figure that more than doubled compared to the previous year. What makes Phoenix Mills particularly attractive is its continued push into new markets and the timely execution of upcoming projects. These operational milestones are expected to act as key growth triggers over the next few years. Nuvama has assigned the stock a target price of Rs 1,907, underlining its confidence in the company’s long term prospects.
Sobha, a premium real estate developer with a strong presence in South India, also secured a buy rating with a revised target price of Rs 1,784. The company had its best ever quarter in Q1FY26, posting record pre sales of Rs 20.8 billion, up 11 percent year on year. While there was a 10 percent drop in realisation per square foot to Rs 14,395, this was offset by the scale of new launches and geographic diversification. Sobha launched two major projects during the quarter, including its first venture into Greater Noida and a high end development in Kochi’s Marine One cluster. The company’s robust pipeline for FY26, combined with its focus on entering new markets and strengthening its development portfolio, supports Nuvama’s expectation of a strong revival in sales performance. With a solid reputation for quality construction and timely delivery, Sobha is seen as a reliable growth stock for investors seeking exposure to the real estate space.
Overall, these three stocks reflect a diversified opportunity within the real estate sector. Macrotech offers scale and consistency in residential development, Phoenix Mills leads in retail led real estate with added residential upside, while Sobha stands out for its luxury positioning and regional depth. Each company has demonstrated resilience, adaptability, and strategic clarity at a time when the real estate sector is seeing structural changes driven by demand for quality housing, retail space, and premium urban development.
Investors looking to build long term positions in real estate linked equities should take note of these names. As always, it is crucial to evaluate company fundamentals, pricing trends, and market cycles before making any investment decisions.
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