Thursday, April 15, 2010

Can this and next year be of Realty Stocks in Indian Market?

Realty buyers are back in south India



Published on Tue, Apr 13, 2010 at 22:27
Updated at Tue, Apr 13, 2010 at 22:31
Source : CNBC-TV18
While Mumbai and the National Capital Region may be reeling under a slowdown in home sales, it is a different story for southern markets led by Bangalore, Chennai and Hyderabad. Spurred by the recent IT revival and stable prices, these markets have now begun clocking in stellar sales growth, reports CNBC-
TV18's Priyanka Ghosh.
The real estate recovery cycle is now knocking on the doors of Bangalore, Ahmedabad, Hyderabad, and Chennai. These markets have witnessed a number of fresh launches in the past quarter after a lull of almost a year-and-a-half.
For instance, Godrej Properties launched its Garden City project in Ahmedabad, selling 800 apartments within 10 days.
Bangalore-based Sobha Developers clocked in sales of 345 apartments versus 431 in the previous quarter, which also included a new launch.
Unitech launched 83% of its new launches in markets other than Mumbai and NCR that includes Chennai, Kochin and Kolkata.
The Prestige Group too has received encouraging response from its launch of White Meadow project in Bangalore.
V Hari Krishna, Director, Kotak Realty Fund, said, "Delhi was the first market to revive in the early part of last year. Then in the first quarter, Mumbai revived. Now, we have seen strong recovery back in Bangalore. Incidentally, we are seeing some decent sales in premium end projects in Hyderabad as well. We are seeing similar results in Chennai as well."
Experts say the spurt in sales have been triggered by the recovery in the IT sector. Infosys has revised its hiring estimates by over 150% in the past one year while Wipro has said it will hire 11,000 people this financial year, up from 8,000 last year
These markets that had been pushed on the backburner may attract investments too. Apart advantage IT, attractive pricing is also key for the spurt in sales. Experts say prices in these markets are almost 20% below their peaks, a stark difference from Mumbai, which is now reeling under low inventory, low sales and an pricing pressure.
Abhisheck Lodha, MD, Lodha Developers, said, "Last year, a lot of people pushed a lot of launches into the market because they wanted to sell whatever they could. You are not going to see that sort of a thing happening every year. I think prices are likely to go up by 10-15% this year from where we stand today."
Industry experts are hoping that the IT revival will also finally lead to a recovery in the commercial sector soon.
My Comments:
Can this and next year be of Realty in Indian Market?...The trend is what is saying.....Yes, this year and next year can be for Realty stocks so try to find stocks which have landbank in prime area in South(Banglore,Chennai etc)West(Gujarat,Mumbai,Pune)......lot of project coming up in Assam so try to find Co which have land bank and  is lying low or dorment in that region where it is going dirt cheap.....
Readers feedback is invited....
Keep a watch on Windsor Ltd.......a dark horse in making....

49 comments:

  1. Dear Rajeev,

    Is their any positive on HFCL directors are leaving

    ReplyDelete
  2. Hi Rajeev,
    Are you tracking resurgere mines?
    Regards,
    Sajith

    ReplyDelete
  3. Dear Rajeev,

    Sorry bse id is investpru. and their is some type of news is that videocon is entering in that script.

    ReplyDelete
  4. TT,
    These Dhoots are also no good..just like Ruia's...there are many stocks in market which are still undervalued...go for that instead trying to follow tainted Cos....

    ReplyDelete
  5. Sajith,
    not tracking Resurgence Mines...

    ReplyDelete
  6. Do you believe any prospect of DLF? Can I buy it at cmp?

    ReplyDelete
  7. H Rajeev,
    r u referring to windsor machine ltd.?
    How they are related with reality business.

    Also whats ur view on "century textile" They just dont have land in Mumbai but at prime locations of Mumbai.

    ReplyDelete
  8. ramesh,
    Century Tex is an excellent buy .....I will write about Windsor Realty arm sometimes lateron.... but it looks like a big game...I may prove wrong...

    ReplyDelete
  9. Linuxlover,
    Sorry, I do not track DLF....

    ReplyDelete
  10. Hi Rajeev,
    If India growth will be driven consumption growth so consumer finance has got great future.
    whats ur views on very illiquid 2000 crore "Shiram city union finance"(just 2-3% in public).
    They are doing good job with two-wheeler finance.

    ReplyDelete
  11. Hi Rajeev,

    One of the calls you have already given i.e. Vijaya Shanti Builders. I think its going cheap and we can take a call on that. Do you tracj KIC Metalics. Its in UC from past few days and promortes have incerased there stakes considerabely.

    ReplyDelete
  12. Hi Rajeev,

    How about SREI Infrastructure Finance?

    ReplyDelete
  13. hi RAJEEV,

    how r u?ZODIAC-JRD-MKG rocking today,thanks for the pick.

    ReplyDelete
  14. Windsor MachinesBSE: 522029 cmp 45.55 or any other scrip.
    rajiv ji i request you when u recomand any scrip please mention bse code also if possible.
    I am highly obliged if u recomand some good reality scrip at cmp or with best entry level to enter for long run.
    any view on
    Peninsula LandBSE: 503031 cmp 77.40
    thanks in advance

    ReplyDelete
  15. Hi Krishna,
    Ya, Zodiac was in 20% UC and made a 52 week high...and I saw that there was 100% delivary that took place in today's trade...means all the shares were lapped up....

    ReplyDelete
  16. Ashok,
    That is the same Windsor Machine you wrote which is around 40....it will be very difficult to write bse code for me....so u all will have to do that by yourself....

    ReplyDelete
  17. thanks Rajiv ji
    i add today 200 essar oil near145 can i add more at cmp or wait for more dips.
    today i add more spanco, geomatry and rathi steel.
    always share me if any scrip looking good for long term

    ReplyDelete
  18. Hi Rajeev,
    Few months back I read an article in economic times that the sales figure in housing sector given by companies(chennai) is false and they published the official figure given by govt of Tamilnadu for chennai which was 19000 in an year against the figure given by builders as 38000.
    Also I have seen that no big realty company has been able to survive in chennai except Vijay shanti builders. DLF, shobha devp, and some other big guns ran away selling their lands here. The most popular builder in chennai is Ramaniyam builders whose apartments one can see everywhere in the city. As far as chennai is considered it the local players who easily survive.
    Again this is what I have noticed here. I may be wrong.

    ReplyDelete
  19. Hi Rajeev,

    As this realty topic has come up here, thought of mentioning about not-yet-listed Nitesh Estates (http://www.niteshestates.com/).

    They have properties coming up at really good places here in Bangalore. Many residential complexes in South of Bangalore, commercial buildings in MG Road (commercial hub of Bangalore) and office buildings around Electronics City (the IT hub of Bangalore).

    Led by a young guy, Nitesh Shetty. He was featured in TOI's city supplement few months back. A not-so-significant-news, Board of Directors include Mahesh Bhupathi too :-)

    But as I said, it's still unlisted. Rumours are floating around that an IPO is around the corner.

    I think I read somewhere that you don't have a liking for IPO's, so just posting this for others reference.

    Cheers,
    Sumit

    ReplyDelete
  20. Rajeev,

    Could you please comment on Orient Paper & Industries Ltd.

    Debt/Equity is 0.66, Interest Cover is 10.82.

    Reported PAT has grown by 10X since 2005.

    Please let me know your opinion on this.

    Regards
    Prashant

    PS: Any information by anyone reading this message would be helpful

    ReplyDelete
  21. Prashant,
    I do not track paper sector....

    ReplyDelete
  22. Hi Rajeev,

    Could you please suggest how is Suven Life for 6-12 monts and even for mong term investment?

    Moreover, I want suggestion on Engineers India & Jindal Steel. Do I keep these stocks?

    Thanks.
    Hardik

    ReplyDelete
  23. Hi Rajeev,

    I heard about that TCI had a landbank in prime areas and they are restructuring these landbank. In abc india has something to do with that or abc india is a buy.

    ReplyDelete
  24. Hardik,
    I do not track any of these....

    ReplyDelete
  25. TT,
    ABC India was my old call around 30....it is 157 it is already now a 5 bagger...so no view now...I know many bought on my call and they asked me about it....now when it has given 5 times return, I donno where they have gone....Stocks sometime take its own time to move...

    ReplyDelete
  26. Hi Rajeev

    Any view on Ram Ratna Wires. Small equity of 1.1 crore shares, holding more than 70% by promoters. Good brand sales of nearly 400 crores of FY 10 projected. Getting into vehicle parking solutions, which is a very major plus. mcap of only 50 crores. I feel is a value buy. Your views on it.

    Regards

    Amit

    ReplyDelete
  27. Hi Rajeev,

    Could you suggest me some stocks in which I can enter right now..and short term target.

    Regards,
    Hardik

    ReplyDelete
  28. rajeevji can you give me your views on Tanla, India Cement and India Cement.

    Also I am hold supreme petrochem as metioned by you any tgt for it

    ReplyDelete
  29. rajeevji
    can you give me your views on Tanla, India Cement and Goa Carbon.

    Also I am hold supreme petrochem as metioned by you any tgt for it

    ReplyDelete
  30. Hi itsmebuddy,
    I request readers to keep the name short and simple so that I have no diffficulty in writing it....
    Hold Supreme Petro for LT....no targets for stocks....no view on any of u asked as I do not track...

    ReplyDelete
  31. TT,
    I do not track TCI so no view...

    ReplyDelete
  32. Hi Rajeev,

    Can u answer my query on Ram Ratan Wires.

    Thanks

    Regards

    Amit

    ReplyDelete
  33. thanks Rajeevji

    uptill i was getting your emails ISG

    I searched for your name and came across your Blog

    From were can i find your list of stocks suggested by you

    Amish

    ReplyDelete
  34. Amit,
    I do not track Ram Ratna Wires......

    ReplyDelete
  35. Rajeev

    Are you open to newer ideas being suggested by readers of your blog.

    Regards

    Amit

    ReplyDelete
  36. Amit,
    That is too much from you...If I go on studying all suggested ideas from all readers just imagine what will be my position....don't u think u r asking and putting too much load on me while asking me such questions?I can't satisfy everyone.It is just like you are forcing me to do it.......Atleast I am answering questions 24*7....have you seen how many queries come up here?Instead I would like to suggest you,put yourself in my place and then see what happens...

    ReplyDelete
  37. Rajeev,

    It was a suggestion and not meant to put you under any sort of pressure. I can understand you.

    I take back my question but it was in no ways to make you uncomfortable.

    Regards

    Amit

    ReplyDelete
  38. Amit,
    What suggestion u r talking of?If I try to look at each and every readers feedback stock , when I will do my JOB?When I will do my other duties?
    What r u talking Amit?Even after reading my answer you don't understand that I can't go on looking for each and every stock that readers ask me to look at....

    ReplyDelete
  39. Hi Rajeev,
    Just found your blog and it is wonderful. Aegis Logistics was a great pick from you but I saw it now only in your blog --too late for me!.
    If you have excel file of your earlier picks, can you send it at desikan30@yahoo.com. Many thanks

    ReplyDelete
  40. Hi Rajeev,
    I am in dilemma. Need your help.
    Recently I am doing Portfolio churrning.
    So I need to hold on anyone of EIL / L&T.
    So which one should I sell?

    With Regards,
    Vikas

    ReplyDelete
  41. DEAR RAJU BHAI
    IT WAS ME WHO ASKED YOU ABOUT ABC IND WHEN IT FELL DOWN TO 32 AND MY PURCHASE WAS 65, YOU SUGGESTED ME TO HOLD AS THE FUNDAMENTALS WERE INTACT. I EVEN DID NOT KNEW THE FULL COMPANY NAME LATER WHEN IT STARTED MOVING I FOUND ITS BIRLA GROUP COMPANY. UNFORTUNATELY I HAD fEW SHARES ONLY.
    YOU HAVE BEEEN SO HELPFUL ALWAYS N I CANNOT FORGET
    1] APAR N KPIT MENTIONED EARLIER WHICH CONVERTED MY HUGE LOSSES OF AMTEK AUTO INTO PROFITS.
    2] YOU HAD PERSONALLY ADVISED ME TO BUY KIRLOSKAR FERRO, SUJANA TOWER N JAYASWAL NICCO...THEY ALL WERE FANTASTIC.....AND I STILL BELIVE THAT THESE TRIDEV STILL HAVE TO DELIVER THEIR BEST.
    I HVE MAILED YOU FEW TIME REGARDING PAID SERVICE ONCE YOU MENTION HERE, BUT I DID NOT RECEIVE ANY REPLY, PLEASE MAIL ME DETAILS.
    THIS IS JUST BECAUSE NOW I HOLD MORE THAN 30 SCRIPTS NOW AND HONESTLY CANNOT TRACK ALL, SO I NEED TO REDUCE THEM BELOW 20.
    PLEASE ADVISE.......

    ReplyDelete
  42. Rajiv ji
    in my view some realty stock like PVP VENTURE,VIJAYSANTI BUILDER,are related to south
    both are explosive stock in past
    can i enter in these stock at cmp for long term.

    ReplyDelete
  43. hi Rajeev/ sumo,

    Nitesh Estates To Raise Rs 405Cr In IPO
    The issue opens on April 22 and closes on April 27.

    Bangalore-based realty developer Nitesh Estates is looking at raising Rs 405 crore in its initial public offering.

    The company had earlier proposed to mop up Rs 450 crore along with a greenshoe option to raise a further Rs 45 crore.

    Nitesh Estates public issue will open on April 22 and close on April 27, sources familiar with the development told VCCircle. It is understood that the firm has tied up three anchor investors for the proposed share sale.

    According to an earlier VCCircle report, the promoters’ holding post IPO will be around 65%. For the year ended March’09, the company had total income of Rs 87.8 crore with net profit of Rs 2.5 crore. Nitesh also has investments from Citi Property and HDFC AMC for specific projects and SPVs of the company.

    nina

    ReplyDelete
  44. ashok,
    pvp and Vijay shanti both looks good...
    for Essar Oil...it is a LT bet...2-3 yrs atleast..

    ReplyDelete