Book profit in realty stocks as rally may hit valuation hurdle: Analysts

Investors holding the stocks could partially book profit; new investors should wait for correction to enter the pack

Shares of real estate firms have been firing from all cylinders, outperforming the markets over the past one year. The rally, analysts say, may hit roadblocks in the near-term amid stretched valuations, even as long-term prospects remain bright for the sector.

"Most of the positive news flow is already in the price; hence investors, sitting on hefty profits, may partially cash out at current levels," suggests VK Vijayakumar, chief investment strategist at Geojit Financial Services.

New investors, meanwhile, he said, could wait for corrections to enter the sector as rich valuations make the pack unattractive from a risk-reward perspective.