(Source Ramgopal25 Via LordLudus)
Categories
Category: RealtyStocks
I came across this article where a brokerage firm does a “Realty Stock Check”-which realty stocks to buy/hold.Found it fairly amusing that there was no “sell” in the title.
Brokerages tend to treat the realty business like any other business.But do they seriously believe that the balance sheet/p&l statements of a realtor reflect the true state of affairs?
Cold hard cash is the mother’s milk which runs the realty business in India.You need cash to buy the land (no land owner will settle for 100% white), you need cash to pay off the contractors,you need cash to manage the politicians, you need cash to manage the officials etc
In Mumbai, builders routinely pay a couple of crores even before construction starts.
When such a large part of the realty business is done off the books,then does looking at the balance sheet etc make any sense?
Realty stocks can be a good medium for speculation/punting.But if you want to make real money from realty, forget the stock and research the hard asset.
In an earlier post, I had blogged about Crisil having a webinar on realty stocks on 19th Dec, 2012 and had enclosed their report as well.
Crisil had made a strong buy recommendation on these stocks and it would be interesting to see how their picks performed Vs the Market.
The table below indicates the performance (19th Dec, 2012-22nd Jan, 2013)
Nifty: + 2%
Ashiana: -6.5%
Bhartiya: +3.6%
Niteshest: -20%
Parsvnath:-7%
Phoneixltd:-1%
Would track these picks on a 1/3/6/12 month basis just to see how they fared over a year
Categories
Sector Focus:Realty Stocks
Realty stocks seems to be back in focus for punters in the market.
We have stocks like Ashiana Housing and Kolte Patil at 52 week highs.
Kolte Patil is especially interesting…it has zoomed by nearly 70% in the last one month alone (16 Nov-18 Dec)
Thats whats makes the Indian equity markets so exciting…there is never a dull moment !
Readers may be interested in knowing that Crisil is conducting a free webinar tomorrow on select real estate companies.According to them, “these select real estate companies are at historical low valuations and offer strong upside”
The companies are Ashiana Housing Ltd , Bhartiya International Ltd , Nitesh Estates Ltd ,Parsvnath Developers Ltd and The Phoenix Mills Ltd