Bajaj Broking’s 2025 Stock Picks: Real Estate and Infrastructure Growth Opportunities
As the Indian stock market emerges from a volatile 2024, influenced by geopolitical tensions, global economic challenges, and rising interest rates, analysts are focusing on stocks with strong growth potential for 2025. Bajaj Broking, a prominent domestic brokerage, has identified several real estate stocks that show promising growth prospects for the next 12 months. These stocks are driven by strategic project developments, strong demand in both residential and commercial real estate, and government initiatives.
Three real estate companies are particularly well-positioned to benefit from ongoing urbanization and infrastructure growth. With solid project pipelines and a good track record of pre-sales, these companies are poised to deliver strong returns as the real estate sector continues to expand.
Top Stock Picks
1. Prestige Estates Projects Ltd. (PRESTIGE)
- Current Market Price (CMP): ₹1,697.45
- Buy Range: ₹1,810 - ₹1,880
- Target Price: ₹2,290
- Potential Upside: 24%
Prestige Estates, a prominent player in the real estate sector, has witnessed significant growth in recent years, and analysts expect this momentum to continue into 2025. The company has a robust pipeline of pre-sales and several major projects lined up for launch. In the first half of the financial year 2025, Prestige Estates achieved pre-sales of approximately ₹8,000 crore, with a target of ₹24,000 crore for the entire year. The upcoming launches, including the Prestige Southern Star, Prestige City-Indirapuram, and Pallava Gardens, are expected to generate substantial revenue, with a projected Gross Development Value (GDV) of ₹52,000 crore.
What sets Prestige Estates apart is its strong execution track record and an effective management strategy that focuses on strategic project launches. These projects are expected to drive significant pre-sales, potentially surpassing the company’s existing targets. Moreover, the stock price is at a crucial breakout point, with technical indicators signaling a continuation of the uptrend. As the real estate market remains buoyant, particularly in the residential and commercial segments, Prestige Estates is expected to deliver strong returns over the next 12 months, making it a compelling long-term investment.
2. Housing & Urban Development Corporation Ltd. (HUDCO)
- Current Market Price (CMP): ₹234.75
- Buy Range: ₹238 - ₹249
- Target Price: ₹314
- Potential Upside: 29%
HUDCO, a public sector enterprise under the Ministry of Housing and Urban Affairs, is one of the top stock picks for 2025, driven by strong tailwinds from the government’s housing initiatives and urban infrastructure development. The recent PMAY-2 (Pradhan Mantri Awas Yojana) housing scheme has positioned HUDCO to play a pivotal role in disbursing loans for affordable housing projects. The scheme is expected to generate ₹750 billion to ₹1 trillion in disbursements over the next three years, boosting HUDCO’s revenue stream.
In addition to PMAY-2, HUDCO is well-positioned to benefit from robust urban infrastructure financing opportunities from the National Highways Authority of India (NHAI) projects and various state government initiatives. The company’s strong association with state agencies and its incremental loan mix toward high-growth, high-yielding urban infrastructure assets add to its growth prospects. The stock has recently broken out above its falling channel, signaling a potential upward trend in the coming months. With a strong leadership team and solid fundamentals, HUDCO is expected to deliver substantial gains for long-term investors.
3. ITD Cementation India Ltd. (ITDCEM)
- Current Market Price (CMP): ₹584.95
- Buy Range: ₹525 - ₹545
- Target Price: ₹687
- Potential Upside: 28%
ITD Cementation, a prominent player in the infrastructure and construction sector, is poised to benefit from the increasing demand for infrastructure development in India. The company has a robust order book, with projects worth nearly ₹30,000 crore in various stages of execution. With around ₹12,000 - ₹13,000 crore worth of bids already submitted, ITD Cementation is expected to secure new orders worth approximately ₹10,000 crore by the end of FY25.
The company’s management has projected a revenue growth rate of 20% to 25% in the coming years, supported by strong order inflows and a growing infrastructure sector. ITD Cementation’s stock is currently showing strong technical momentum, with a breakout above the bullish Cup & Handle pattern, which suggests the potential for further upside. Given its strong fundamentals, large project pipeline, and growth outlook, ITD Cementation presents an attractive investment opportunity for long-term investors.
Looking Ahead
The real estate sector presents promising opportunities, driven by ongoing urbanization, increased demand for residential and commercial spaces, and government initiatives such as affordable housing schemes. The sector's growth will be fueled by the expansion of infrastructure, particularly in tier-2 and tier-3 cities, along with a continued focus on sustainable and energy-efficient buildings. Investors should look for opportunities in key markets that are seeing strong pre-sales growth and upcoming project launches. As demand remains robust, the real estate market is expected to deliver steady returns, making it an attractive sector for long-term investment.
