Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Property»These five real estate stocks are poised to benefit from the revised rules on long-term capital gains tax
    Property

    These five real estate stocks are poised to benefit from the revised rules on long-term capital gains tax

    August 12, 20246 Mins Read


    The LTCG was increased from 10% to 12.5% for both financial and non-financial assets. The STCG on certain financial assets was also raised from 15% to 20%. Additionally, the removal of the indexation benefit for long-term capital gains meant investors could no longer adjust the purchase price for inflation, leading to higher taxable gains. This got a big thumbs down from investors. While traders were hoping for a decent increase in the exemption limit, it was only raised from ₹1 lakh to ₹1.25 lakh a year.

    Much to their relief, though, Sitharaman recently revised the original proposal in the face of backlash. 

    For property acquired before 23 July 2024, taxpayers will be able to choose between 12.5% LTCG tax without indexation, or 20% with indexation. The indexation benefit is particularly important for assets held over long periods as it can significantly reduce the amount of taxable gains by factoring in the effect of inflation.

    Also read: Reintroduced indexation benefit for property disallows loss offsets, excludes NRIs and companies

    This change in rule is positive for homeowners, especially those in the middle class who are looking to sell and buy property. It also means that we should see more new property deals, which is a big win for real estate players.

    Let’s look at the top companies that stand to benefit.

    #1 Macrotech Developers (Lodha)

    Macrotech Developers, formerly known as the Lodha Group, is a leading real estate company that specialises in affordable and luxury housing in large Indian cities. It has been in the real estate business since the 1980s.

    Debt is always a big issue for real estate companies. Macrotech is taking on this challenge by raising ₹3,280 crore via a qualified institutional placement (QIP), which has reduced its net debt to ₹3,000 crore.

    A strong project pipeline and expansion in existing and new markets provide revenue visibility to the company.

    Last week, Macrotech reported a 166% surge in its consolidated net profit to ₹480 crore, from ₹180 crore a year ago. Management expects strong bookings in the multi-decade housing up-cycle as India transitions from a low-income to a middle-income economy.

    #2 Godrej Properties 

    A major player in India’s real estate market, Godrej Properties has a diverse portfolio that includes residential, commercial and mixed-use projects. 

    In a recent investor presentation, the company’s chairman said net debt and the debt-equity ratio are both in line with the company’s guidelines. 

    This was after the company reported a 20% growth in its net debt to ₹7,430 crore last week. Consolidated net profit hit ₹520 crore in Q1 from ₹120 crore in the year-ago period. The company is on track to touch ₹27,000 crore in bookings by the end of FY25 and surpass its previous records for deliveries and collections.

    It recently entered into a strategic partnership with Kumar Properties to develop a large residential project in Pune. 

    #3 Prestige Estates

    Prestige Estates is a prominent real estate developer that focuses on residential, commercial and retail properties across south India. It specialises in mid-to-premium properties, with most projects concentrated in Bengaluru. It builds townships, commercial spaces, retail centres and even hotels. Its strategic use of joint development models keeps land banking costs down, allowing it to expand its footprint.

    Prestige plans to ramp up its rental income from ₹550 crore to ₹3,900 crore by FY28. It also plans to double its hotel portfolio from 1,489 keys to 2,969 keys by then. 

    Also read | Budget heartburn: How many taxpayers actually declare capital gains?

    It has plans for ₹14,600 crore of capex over the next four years, two-thirds of which will come from debt and the rest from internal accruals.

    It has raised ₹2,000 crore via optionally convertible debentures (OCDs) from the Abu Dhabi Investment Authority and Kotak Alternate Investment Fund to fund land acquisition and approval costs for four identified projects with a gross development value of ₹18,000 crore.

    As of March 2024, the company had a project pipeline of about 75 million square feet to be launched in FY25. This provides strong revenue and profit visibility.

    #4 Oberoi Realty

    Oberoi Reality is a leading real estate developer known for premium residential and commercial properties, primarily in Mumbai.

    The company develops residential, commercial retail and social infrastructure projects, and offers hospitality and property management services. It recently launched a luxury residential project in south Mumbai.

    Over the years, Oberoi Realty has developed 42 projects across Mumbai, aggregating around 11.9 m sq ft. Its marquee projects include Oberoi Garden City, Oberoi Mall and Exquisite. It currently has two major projects under construction, totalling 2.2 million sq ft. However, completed projects spanning about 5 million sq ft are yet to be fully booked.

    The company recently acquired land in Gurugram, marking its entry into the National Capital Region. It has also completed the transaction for a land parcel in Thane.

    #5 DLF

    DLF is one of India’s largest real estate developers and has a comprehensive portfolio that includes residential, commercial and retail properties in major cities. The company recently made headlines for selling more than 1,100 flats in Gurugram at ₹7 crore each in just three days.

    The rise of the middle class and a shift from rural to urban has long been a key theme in India’s growth story. DLF is among the companies that are benefiting from this trend.

    Also read | Mint Explainer: Why Sebi and Indian real estate investment trusts are in Hindenburg’s crossfire

    The company recently posted its Q1 earnings, showing strong improvement across metrics. It reported pre-sales of ₹6,400 crore driven by the successful launch of Privana West. It has another big launch – Ireo – coming up next year, once the license transfer is completed.

    Going forward, the company expects strong revenue and profit growth as its sales pipeline looks promising, with launches planned for Goa.

    Conclusion

    The Indian real estate sector offers potential, but choosing the right stock is key. This is not as straightforward as it might seem. Good-quality stocks with a well-known brand name and strong execution have already run up a great deal. 

    You should look for companies with strong balance sheets, low debt, and a long history of good intentions towards their shareholders. Also consider your risk tolerance and investment horizon, and do your research before making any investment decisions. 

    Happy investing!

    Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. 

    This article is syndicated from Equitymaster.com



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Japanese knotweed spreading ‘extensively’ in seaside town water front as locals warn it ‘could devalue property’

    Property

    St Dogmaels among the best UK villages to invest in

    Property

    Avoid cyber fraud with these tips

    Property

    Inside story of the ‘well off’ teacher and pop star accused of squatting in a $2million home – and how it CAN be done… with Bill the property developer laughing all the way to the bank

    Property

    Location-based property search platform launches

    Property

    Property owners respond to PSEG’s allegations of threats, request for US Marshals’ help

    Property
    Leave A Reply Cancel Reply

    Top Picks
    Cryptocurrency

    China’s CBDC platform registers 180m wallets, 7.3t yuan in transactions

    Investments

    Comités sur la réforme de la Basic Retirement Pension : le ciblage attise la colère des syndicalistes

    Cryptocurrency

    Top Analysts Compare Profit Potential Between Bitcoin (BTC) & New Cryptocurrency

    Editors Picks

    DIFD AUTO enables buyers to purchase Tesla and imported cars using cryptocurrency

    August 15, 2025

    le début d’un bull run ?

    June 10, 2025

    Real Madrid – Real Sociedad : au terme d’un match fou, les Merengue rejoignent la finale de la coupe du Roi… le résumé

    April 1, 2025

    Griezmann’s heartfelt message to Vela

    May 27, 2025
    What's Hot

    FIP Silver Le Caire – Seurin et Vanbauce signent une belle performance et filent vers le dernier carré

    April 26, 2025

    The Emergence of Cryptocurrency Hedge Funds in Singapore

    February 10, 2025

    Want steady income? These two dividend-paying companies are worth a look – Stock Insights News

    April 13, 2025
    Our Picks

    Metals Focus sees silver climbing to $42–$45 per ounce, expects gold to touch $4,000 in 2026

    August 5, 2025

    These 4 Brokerages Make It Easy to Buy Bitcoin

    October 28, 2024

    60% of Americans Think Climate Change Is Driving Up Their Energy Bills

    August 11, 2024
    Weekly Top

    MEDIROM launches cryptocurrency strategy with next-generation proof of human technology, World

    August 23, 2025

    Jersey metal detectorist ‘saves marriage’ by finding wedding ring

    August 22, 2025

    Ethereum Shatters Records, Surges 250% From April Lows, Why Is Cryptocurrency Rising? | Cryptocurrency News

    August 22, 2025
    Editor's Pick

    Biden allows more solar cell imports to avoid Trump-era tariffs By Reuters

    August 13, 2024

    UBS réduit son exposition à l’eau britannique et dégrade United Utilities

    April 29, 2025

    Hong Kong rolls out policy statement, moves to nurture fintech

    October 29, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.