SP Tulsian`s view on Godrej Properties

SP Tulsian, sptulsian.com shares his view on Godrej Properties.

Tulsian told CNBC-TV18, “When you make a comparative analysis or when you take a call on the other stocks, people have been taking a bullish call on the Godrej Properties, but I am maintaining my reservation because there is no point in taking the call on all the projects because sometimes people are too gung-ho on their Vikhroli property.”

He further added, “The promoters or the parents are holding the kind of development rights this company will be having in and all sort of discussion, but if you see this stock it has corrected from about Rs 630-640 when the promoters have really reduced their stake in the company to about 75% since then in this last 1-1.5 month the stock has given a negative return of more than 15% while the other real estate companies have given a return of close to about 20% in this period. So if you take a swing of the net position the stock has given a negative return of close to about 25% and even from now if it gives a return of maybe about 10-15% I won’t be really too comfortable. So I have been maintaining my negative view on the stock that this seems to be quite expensive.”

“If one really needs to take a call maybe the big property players like the HDIL in Mumbai belt or maybe the DLF because in DLF we have been seeing improvement in the sale of the property in the NCR region, apart from that they have the news flows lined up in respect to the monetisations of their Aman Resorts or maybe the Mumbai property plus launch of their rich premium golf township projects in NCR region all those things are going in favour of these companies or maybe the pockets like Bangalore where the companies like Brigade Enterprise are really seen quite ruling at very lower fundamental values, so on a relative basis I will not be too positive on Godrej Properties, but would prefer to take a call on the other 2-3 real estate stocks, which I have just mentioned.”