Recently There was GST cut on Housing sector.Gst was cut down from 12% to 5% For New home buyers for under construction project and from 8% To 1% for Affordable housing projects.
There can be sustained Growth phase and that can be visible after 12 to 24 months.
BEATEN DOWN REAL ESTATE STOCKS CAN BE GOOD BET FOR NEXT 3 TO 5 YEARS
We@wealthcreatures feel that the reduction in GST can potentially reduce the buyers payout by 5%-7% on the overall purchase, depending on the category. The consequent lower ticket-size for new homes will further help in accelerating sales volume & would bring down inventory available in market.
Next Growth to drive can be Building India and many sectors to benefit from it Real estate, Housing Finance companies , Cement,Building Materials companies.
REAL ESTATE :
Top picks In Real estate stocks are Oberoi Realty,Ajmera Realty,Purvankara,Crest Ventures,Godrej Properties.
HOUSING FINANCE :
After Recent Meltdown in Housing Finance Companies,This sector can be big beneficiary going ahead as they are specialists at operating lower down the pyramid VS Banks, which tend to focus on higher ticket size and salaried clients.
Top picks which are Trading at good discount from 52wk highs and many are close to 52 week Lows also
PNB Housing,Can Fin Homes,GIC Housing,Ibull Housing,AB Capital
Government has focused on Affordable Housing.The outlook looks positive for next few years.Demand is expected to Grow 8% to 9% CAGR 19-25.Currently utilization is around 67% which can increased to 90% by FY25.This would turn industry Profitability and Realization also.
Stocks which can benefit Sagar Cement,Sanghi Cement,Acc,UltraTech & Ambuja cement
Home Building Materials space:
The share of building materials excluding cement is estimated to jump to Rs3.8tn by FY21 from Rs2.5tn currently. In each home building materials segment, the share of the unorganised segment is more than 50% & in some cases even 70%.GST rates are also reduced to 18% from 28%
Few Names which can benefit Are Century Ply,HIL,Asian paints,Greenply,Sahyadri Inds,Visaka Inds,Shankara Building products
DISC – All Views expressed are personal and For Educational & Study purpose only.Consult Your Financial Advisor Before Investing.