Buy realty stks for long term: D Mehta

Dipan Mehta, Member, BSE/NSE is of the view that one can start buying into real estate with long term perspective.

Mehta told CNBC-TV18, "If you are a really long-term player with a two-three years view and comfortable at taking contrarion calls then this is perhaps the time to at least start buying into real estate and then average lower and lower because clearly the kind of discount at which these are available to the land bank is quite significant and attractive at this point of time. If you believe in the India story then at some point of time real estate prices are going to look up and volumes are going to pick up and companies like DLF are sitting on a very valuable tracks of land at very attractive locations. If you have a two-three year view then certainly this is the stock that one should be looking at in the sector and one should be trying to get into gradually at this point of time."

He further added, "In the immediate short-term, three-six months, still more pain and I think the numbers coming out from this sector also would be quite disappointing. We did see a bit of it in Q4 and I think Q1 would be very challenging for that industry and you could see declines in profit QoQ and YoY as well and that could damage the sentiment and may take the stock down a little bit. But I think at some point a base formation, some kind of a support level would come purely on account of the land bank, which these companies own. So it is a bit of a short-term sell but then certainly long-term is not that bad as is shown by a lot of other analysts."

Disclosure: Analyst and his clients have a personal interest in Infosys.