Best Real Estate Stocks in India October 2024 – Based on 5Y CAGR

The real estate market is projected to expand to ₹65,000 crore (US$ 9.3 billion) by 2040, up from ₹12,000 crore (US$ 1.72 billion) in 2019. By 2030, the sector in India is expected to reach a market size of US$ 1 trillion, increasing from US$ 200 billion in 2021, and contribute 13% to the country’s GDP by 2025. In this article, we will explore the best real estate stocks as of October 2024, focusing on their 5-year compound annual growth rate (CAGR).

The growth of the real estate sector is mainly backed by the expansion of the business environment and the demand for office space and urban and semi-urban housing. 

Best Real Estate Stocks in October 2024 – Based on 5Y CAGR

Note: The list of real estate sector stocks has been sorted based on 5Y CAGR as of October 11, 2024.

Overview of 5 Best Real Estate Stock

1. Valor Estate Ltd: Incorporated in 2007, Valor Estate is primarily engaged in real estate construction, development and other related activities. The company’s most of the projects are based in and around Mumbai and are under various stages of planning and construction. The company continues to explore and has a good ability to do strategic alliances Development Management Agreements, Joint Development Agreements with Developers, Real estate and Construction companies for business growth.

Key Metrics:

• Return on Equity (ROE): 36%
• Return on Capital Employed (ROCE): 22.7%

2. Prestige Estates Projects Ltd: Prestige Estate Projects has a diversified business model across various segments, viz., Residential, Office, Retail, Hospitality, Property Management, and Warehouses, with operations in more than 12 major locations in India. The company has an ongoing/upcoming project portfolio of 108 projects covering 189 msf of the total development area (TDA) across all segments. During Q1 FY25, the company has deepened its presence in South India and is looking to recreate past success in NCR as well. 

Key Metrics:

• ROE: 12.9%
• ROCE: 14.9%

3. Anant Raj Ltd: Anant Raj Ltd is primarily engaged in the development and construction of IT parks, hospitality projects, SEZs, office complexes, shopping malls and residential projects in the states of Delhi, Haryana, Andhra Pradesh, Rajasthan and NCR. During Q1 FY25, It commissioned an additional 3MW at Manesar in Q1FY25, bringing the total operational capacity to 6MW. Additionally, strengthening work in Panchkula is ongoing, where ARL will operationalise the data centre with an initial IT load of 7MW; on track to deliver a 28MW IT Load by the FY25 end.

Key Metrics:

• ROE: 8.05%
• ROCE: 8.56%

4. Brigade Enterprises Ltd: Brigade Enterprises Ltd is a real estate developer in South India based in Bengaluru and expanding its area of operations in other parts of India. In Q1 FY’25, the Brigade leasing portfolio stands at 8.7 million square feet with consistent office rental collections. The company’s revenue share was contributed 65% by Real Estate, 24% by Lease Rentals, and the remaining 11% by Hospitality during Q1 FY25.

Key Metrics:

• ROE: 11.7%
• ROCE: 12.7%

5. DLF Ltd: DLF Ltd, with its subsidiaries, associates and JVs, is engaged in real estate development, from the identification and acquisition of land to the planning, execution, construction and marketing of projects. DLF is carrying a cash balance of about ₹5,000 crores in RERA accounts alone. 

Key Metrics:

• ROE: 6.95%
• ROCE: 5.74%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.