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Market expert SP Tulsian remain positive on select real estate stocks

Updated : October 03, 2019 06:43 PM IST

Market expert SP Tulsian of sptulsian.com on Thursday said he remains positive on select real estate stocks.

On DLF, he said, "Real estate stocks can be looked into from 6-12 months point of view but I will not be taking a call on DLF. If you take a call on their debt reduction, they have been talking about, it's getting delayed as DLF is not successful in it. Even if you see the transfer of the annuity yielding or the rent yielding assets, which they have transferred of Rs 300 crore on which the debt burden of Rs 1,000 crore will get reduced from the DLF. However, just transferring to the associate companies, you don't get satisfied."

"Secondly, the overhang of the regulatory actions which are seen pending and suddenly you may see any issue getting cropped up. In fact, in my view, NCR seems to be the worst affected in terms of the offtake of the premises whether you talk of the southern pockets or western region. Probably, the NCR is flooded with supply and you are not seeing the offtake seen happening there into the larger or maybe high-end residential market also. So, in all the segments they have been struggling," Tulsian said.

Talking on Yes Bank, he said, "There were three uncertainties which were seen dragging the share price of Yes Bank. One was the continuing of the stake held by Rana Kapoor. The second was the QIP and third was on the financial working to be seen in Q2. So, look for the support of maybe Rs 35. Now the share is hovering around Rs 40 for the last four hours and look for a target of Rs 50 in the month of October."

On Piramal Enterprises, he said, "I think the liquidity pressure and the asset quality is seen looming large over the stock. In fact, they have been trying their best. In fact, Piramal is looking to exit from the Shriram Capital plus apart from that, there was news that Softbank probably may not infuse the capital into the company. If they have the shortage of the capital, that will be definitely seen a big negative. Piramal is stuck in the real estate. Automobile and real estate are seen to be the problem point for the economy. Piramal has more presence in the Mumbai city and that too in the upper end, where they have been forced to acquire the projects against their lending. So, taking all this into consideration, you may be having a tough time going forward at least for 6-8 months. I would not be surprised to see the share correcting further by about 12-15 percent either on the declaration of the Q2 numbers or maybe on any kind of negative news flow seen coming in from these sectors."

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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