Sell Reliance Communications above Rs 150: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "In the month of December, Reliance Communications (RComm) has clarified that it will be monetising their assets by developing the property. At that time it has given a reference of the 135 acre Navi Mumbai property and has stated that 10 million square feet will be available for development. Now it has stated the same 135 acre available with 15 million square feet and apart from that they have added two or three other properties at Hyderabad and Delhi."

He further added, "If one really takes the overall call and the amount, which RComm have stated as a fair value of Rs 60 per share, I don't think that it is the right way because if one applies the same principle then probably all the real estate stocks will really be looking quite attractive. They are not looking for outright sale of these properties. They are looking to develop them, which will take four-five years' time."
"In my view, they will do atleast to the extent of Rs 10,000 crore to Reliance Properties because ultimately the intention is to pare the debts of Rs 39,000 crore, which have been standing in the book of Reliance Communications," Tulsian said.
He further said, "It will be incorrect to presume that Rs 60 will be the value, which will get derived from one share of Reliance Properties. So taking all this into consideration, I will advice one should take a long-term call of one year because the prospects are looking quite good. If one has a very near-term view, a very short-term view, one should look to exit above Rs 150." Also Read: Reliance Comm hits 31.5-month high on realty demerger