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Maharashtra's recent elections saw the BJP-led Mahayuti alliance secure over 200 seats, signaling continuity in policy. However, promises of direct cash handouts to 26 million women raise concerns about the state's fiscal spending and potential impacts on capital expenditure, particularly affecting EPC stocks like L&T and Ashoka Buildcon. In the first seven months of the financial year, projects worth Rs 1.5 lakh crore were awarded across various sectors, but a slowdown in state capex could hinder future growth.
The Thermoformed Plastics Market is projected to grow from USD 14.94 billion in 2023 to USD 24.61 billion by 2030, driven by demand in food packaging and healthcare sectors. However, challenges such as environmental concerns and competition from alternative solutions may impact growth. Opportunities lie in sustainable material innovations and advancements in automation and technology.
TARC shares surged 5% after selling 50% of its TARC Ishva project for Rs 1,350 crore, contributing to a 55% increase in stock value this year, compared to the Nifty 50's 10% rise. The luxury residential development spans 1.35 million square feet along Golf Course Extension Road in Gurugram, featuring Four Side Open Residences with stunning views of the Aravali Hills and top-notch amenities.
Shares of Pudumjee Industries fell 10% to Rs 60.3 amid a flat market, driven by sharp profit booking after a significant rise. The stock had reached an intraday high of Rs 66.70, nearing its record of Rs 71.66 from January 2008, with trading volumes spiking to six lakh shares, well above the monthly average. The company, part of the paper industry, continues to benefit from strong growth prospects due to capacity expansion and favorable tax changes.
Mumbai-based Avighna Group has acquired Emaar Business Park 3 in Dubai for approximately Rs 555 crore. The six-storey mixed-use property, developed by Emaar and previously held by Bank Muscat's Izdihar Real Estate Fund, features around 150,000 square feet of commercial and retail space on Sheikh Zayed Road.
India's real estate sector is projected to exceed $4.8 trillion by 2047, contributing 18% to a $26 trillion GDP, up from its current 7% share. The proptech market is expected to grow to over $600 billion, representing 12-13% of the real estate industry, driven by innovations like AI, IoT, and BIM.
Sobha Ltd., a prominent real estate firm in Bangalore, reported a 32% YoY decline in pre-sales for Q2FY25, with total sales volume down 45% YoY, despite a 56% increase in average realization. The company anticipates recognizing Rs. 14,500 crore in revenue over the next 4-5 years, with a target price of Rs. 1,802, as it prepares to launch ~5.5msf in the latter half of the fiscal year.
Australians are increasingly investing in home renovations, with spending on such projects rising to 40% of total residential construction in fiscal 2024, up from 34.2% five years ago. Meanwhile, new home-building activity has plummeted to its lowest level in over 35 years on a per-capita basis.
Morgan Stanley has downgraded Prestige Estates to 'underweight' from 'overweight', citing disappointing pre-sales growth, achieving only 29% of its FY25 target in the first half of the fiscal year. The brokerage has reduced its price target by 15% to Rs 1,510, indicating an 11.5% potential downside. It also noted high capital expenditure in the company's IP business and weaker pre-sales momentum compared to peers.
Morgan Stanley has set an overweight rating for LTIMindtree with a target price of ₹7,050 per share, noting a strong deal pipeline and new client additions despite elusive discretionary spending. Meanwhile, Nomura has reduced its rating, targeting ₹5,140 per share, emphasizing the need for double-digit growth to achieve a 17-18% EBIT margin band as the company aims for $10 billion in revenue by 2031-32 while embracing an AI pivot.
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