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Below are Quote on Real-estate stock gaining momentum by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd   

Real-estate stock gaining momentum on the back of better than expected pre-sales for Q1FY22.

Today, S&P BSE REALTY hits a high of 2890 and now is trading near the 52 weeks high of 2909.9 which was made in March 2021. We have seen some good numbers from Sobha Limited yesterday which were better than the market expectation. The company reported pre-sales growth of 40%.

We have seen a very good 2nd half of FY21 after the sector was adversely hit by the pandemic in 2020. Several companies reported their all-time high results in Q4FY21 on the back of some effects of pent-up demand. It was expected that the demand for 2022 will strengthen this year whereas the ready to move inventory levels have hit 7 years low in Q1FY22, as customer preference has been changed to the ready property rather than the under-construction properties. We expect Residential real-estate to do well in the financial year 2022 as some early signs of the organized sector gaining the market share are encouraging. We have a buy call on Godrej property with a target price of 1700.

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