Buy DB Realty around Rs 95, says SP Tulsian

SP Tulsian of sptulsian.com advises traders to buy DB Realty around Rs 95.

Tulsian told CNBC-TV18, “If you see the reason for correction of both these stocks, DB Realty and Unitech because of the revelation of the prosecutor in collusion with the accused, I honestly don’t see any kind of – in fact in my view no effect should have come on this. This is either the knee jerk reaction or may be technical in nature because even if you see whatever factor has to or whatever damage has to happen has already seen in the share price way back and since then even if you take the worst case scenario that all of them have found to be guilty, may be the alleged promoters of both the companies and may be the public prosecutor that is advocate Singh, the new charges will be initiated against them, new inquiries will be initiated against them but I don’t understand that how that will really be affecting the companies working and all that.”
He further added, “When the things were at its extreme against the promoters of the company, we have seen the damage having taken place, since then lot of water has flown under the bridge. We have seen lot of realty stocks having re-rated and both these companies have seen may be executing their projects and all that. So, I see this as a overreaction. It is very difficult to say that till what it can really go on. In fact when I saw this news in the morning or yesterday evening, I thought that probably this may have a mild negative effect which should get erased or which should subside over the next couple of days but that has not happened. So, probably this looks to be the extreme reaction and I think that may be the share price should settle and may be in case of Unitech because that has its presence in F&O, the stock may even bounce back because the technical supports or may be the kind of shorts having seen built up in the counter, probably has made it to correct so much.”
“I will recommend buying maybe at Rs 95 because in case of this volatility you never know that it can fall by maybe about Rs 4-6 and maybe the company having completed their Goregaon projects. The possession of that will be handed over, will get reflected in the next two quarters. So, I will advice buying at Rs 95. In case of Unitech, I will advice buying at Rs 25 or so."