Book profit in Unitech: Sekhar

Phani Sekhar, Fund Manager, Angel Broking advises to book profit in Unitech at current levels.
 
Sekhar told CNBC-TV18, “Unitech is a market sentiment oriented stock. Very difficult to predict over the near to medium term, but what is clear is the bottom for the real estate stocks including Unitech seems to be behind us, what it doesn’t mean is that the stocks have started a new bull market because six months back the expectation was that interest rates will come down in a hurry in FY14.”
 
He further added, “Economy will show firm signs of turnaround based on which the valuations of many of these real estate stocks got ahead of fundamentals. So, after that stupendous rally you have seen a lot of correction happening in the real estate stocks. Still real estate space over the last one year has been an outperformer as compared to the index. If you come back to what is happening today because the economy is still in a slowdown mode execution has suffered a lot especially with companies like Unitech in places where they are dominant such as Noida. So, this has led to the kind of deleveraging that investors were expecting not happening. So, from a medium term perspective that is over the next six months to one year the same conditions will prevail which will put a constraint on the stock from giving any meaningful returns. Over the longer term the investors can make money but over the next six months to one year I feel the investor can safely book his losses.”