4 Quality Midcap Stocks To Buy Suggested By Motilal Oswal, Shares Can Give Up To 40% Return

These 4 stocks are Prestige Estates Projects Ltd., Mahindra Lifespace Developers Ltd., Brigade Enterprises Ltd., and Sobha Ltd. Check below to Know more.

1. Prestige Estates Projects Ltd. (PEPL)

The brokerage has assigned a Target price of Rs. 675 apiece on the stock of PEPL, claiming a potential upside of 21%. The stock jumps 4.73% on Monday, ended at Rs. 562.15 apiece.

It has given 34.12% positive return in 1 year, 179.82% in 3 years and 115.38% in 5 years, respectively.

Launches and guidance: The company launched 16.5msf of residential projects in FY23. It intends to launch at least the first phase of all the projects in the 76msf pipeline with saleable area of ~25msf and has guided for 25% growth in pre-sales in FY24.

2. Brigade Enterprises Ltd. (BRGD)

Motilal Oswal initiates Buy on the stock with Rs. 720 apiece. It sees 28% potential upside from its current level. The stock last traded at Rs. 565.10 apiece on NSE, up 3.05% from the previous close. It has given 23.95% in 1 year, 337.05% in 3 years, and 236.04% in 5 years, respectively.

Launches and guidance: Citing strong sales momentum, the company plans to launch 7.5msf of residential projects in FY24 with a revenue potential of INR60b. BRGD aims to register a CAGR of 20% over the next five years and is building organizational capability on similar lines

3. Mahindra Lifespace Developers Ltd.

The brokerage initiates Buy on the stock with a target price of Rs.550 apiece, claiming a potential upside of up to 18% from its current level. The stock closed at Rs. 469.20 apiece, up 1.39% from its previous close.

The stock has given 14.4% positive return in 1 year. In 3 years, it has given 575.11% multibagger return, while, in 5 years, it has given 156.84% positive return.

Launches: The company plans new launches across nine projects, including Kandivali, Citadel Ph-2 and recently acquired redevelopment projects.

BD: It had INR55b BD pipeline at the beginning of FY23 and despite converting a couple of projects, the pipeline has been replenished to INR55b now. The focus is on evaluating the right kind of projects rather than bulking up the pipeline due to limited bandwidth

Sobha Ltd.

The brokerage sees a robust upside of up to 40% with a target price of Rs. 750 apiece. The stock last traded at Rs. 538.55 apiece on NSE, up 0.87% from its previous close.

The stock has fallen 0.49% in 1 year. However, it gave 142.7% positive return in 3 years and 5.72% in the past 5 years.

Launches: Demand momentum remains healthy, and to keep up with momentum, the company plans to launch of 7-8msf of projects in FY24: 5msf in Bengaluru, 1msf in NCR and the rest in other markets.

Operating Margin: SOBHA will continue to witness margin pressure in the contractual business for a quarter and in the residential segment for the next two-three quarters.

Disclaimer – The Midcap Real Estate stocks have been picked from the Real Estate sector brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.

By Shubham Kumar Goodreturns