Pushan’s 25 Real Estate Alternatives

In India, Real Estate is a preferred asset class for investment. Even though equity has outperformed real estate assets eminently, Indians continue to choose real estate to be the safer and wiser option for parking their wealth. Only a handful of real estate developers have been able to run their businesses successfully for a long period of time. The major problem with the failed developers has been poor financing, greed, and overambition. Thus, there is skepticism when choosing the right developer. Will they deliver?

Nonetheless, as tremendous wealth is projected to be created in India over the next couple of decades, the real estate sector will rise. It is inevitable that people will buy more homes as they make more money and there will be a surge in the number of development projects. The real estate sector is projected to grow at 8–9% annually. Now, the question is — how does an equity investor benefit from this growth?

I believe it is wiser to invest in companies that make up the foundation for real estate projects and developments rather than investing in the development companies themselves. I’d rather invest in companies that are involved in the construction process, manufacturing of construction materials, interiors, fittings, and furnishings. Historically, these 25 companies have generated a return of 20.02% (CAGR)(average) over the last 5 years (November 2017 to November 2022), and 22 of these companies generated a return of 25.28% (CAGR) over 10 years — this means they multiplied wealth by 9.5 times.

My top 25 real estate alternative stocks are:

1. Asian Paints Ltd
2. UltraTech Cement Ltd
3. JSW Steel Ltd
4. Pidilite Industries Limited
5. Tata Steel Limited
6. Ambuja Cements Ltd
7. Siemens Ltd
8. Shree Cement Limited
9. Havells India Ltd
10. Berger Paints India Ltd
11. Astral Ltd
12. Polycab India Limited
13. Supreme Industries Ltd
14. Voltas Ltd
15. Apl Apollo Tubes Ltd
16. Escorts Kubota Ltd
17. Crompton Greaves Consumer Electricals Ltd
18. JK Cements Ltd
19. Whirlpool of India Ltd
20. Kajaria Ceramics Ltd
21. Sheela Foam Limited
22. Century Plyboards India Ltd
23. Cera Sanitaryware Ltd
24. Hindware Home Innovation Ltd
25. Carysil Ltd

Pushan’s 25 Real Estate Alternative Stocks

(Disclaimer — The investments discussed or recommended in the market analysis, research reports, etc. may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and only after consulting such independent advisors as may be necessary.)