Quite positive on DB Realty at Rs 468: Tulsian

Excerpts from Closing Bell on CNBC-TV18 Watch the full show »

Investment Advisor, SP Tulsian is positive on DB Realty . He feels the issue has been reasonably priced.

Tulsian told CNBC-TV18," I don't think the points are understood well for the company and this has been taken as a realty stock. Three points go strongly in the favor of the company, the strong presence in Mumbai, the second is the debt free status of the company and third is the execution capability. I don't think any company in the past have executed the project of four million square feet that too at three locations in Mumbai. That is the track record."

He further added, "Even if you look at it now the projects that they have or the upcoming or forthcoming projects, if you add all this they've got a total of 25 projects which constitutes for about 6.1 crore or 61 million square feet. That gives an average area of 24 lakh square feet at each location and a strong presence."

"We stay in Mumbai and have seen their presence in the pockets like Mahalaxmi, Jacob's Circle, Saat Rasta, Prabha Devi, Goregaon, Kandivali where apartments are on a fast selling spree and the selling price is very high. When I make a comparison with other companies like HDIL which is a comparable play and with an expected EV of about Rs 14,000 crore for HDIL and likely to about Rs 12,000 crore for DB Realty, in fact I see a lot of potential and upside in this stock and it seems the issue has been reasonably priced. Since we have seen the anchor investors coming in the lower band, we wish the price get discovered at the lower band. So at Rs 468 my call is quite positive on this stock," Tulsian said.