DLF looks interesting with two-year view

Sanju Verma, Head-Institutional Broking, HDFC Securities feels that DLF looks interesting for somebody who has clearly a two-year view.

Verma told CNBC-TV18, “DLF looks interesting for somebody who has clearly a two-year view because the margin of safety at the higher end of the band say Rs 550 odd is very thin. So if you are making listing gains, post the issue getting listed, then I think you are better off booking profits because there are a lot of grey areas. There are a lot of numbers floating around in the market with respect to the net present value of DLF which ranges from anywhere between Rs 460-525-530 odd.”

She further said, “Taking this as a yardstick of what the company is all about, I think at the higher end of the band you should see some selling pressure coming in as I said real estate as a sector certainly looks very interesting. So if you have a longish horizon then it is perhaps worthwhile for the investors who are willing to wait for the long hold to get into it. But otherwise post listing gains you could look to book some profits there.”