According to reports, Nomura has initiated ‘reduce’ ratings on Godrej Properties and Phoenix Mills, anticipating an 18% and 11% downside, respectively. Key highlights include:
• Concerns over execution risks and slowing growth
• Weakening pre-sales and margin pressures cited
• Nomura emphasizes the need for realistic valuations in India’s real estate sector
The development underscores the challenges posed by stretched valuations in the real estate market, urging investors to exercise caution and reevaluate their investment strategies for these companies in the current economic landscape.
Source: Economic Times