Sobha Developers, Prestige Estate, DLF top picks: Gubbi

Sobha Developers, Prestige Estate and DLF are top picks in real estate space, says Pramod Gubbi, VP- Sales, Ambit Capital.

Gubbi told CNBC-TV18, “We have been constructive on the real estate space but very selective on the names in general. We have liked Sobha Developers and Prestige in particular and to some extent DLF as well. The reason being whilst the possible rate cut cycle beginning what we saw last week and perhaps extending over the next 12-18 months is clearly a positive.”
He further added, “There are other structural issues that are on affordability and land clearances and so on which we think will remain for quite sometime. So, to that extent we are looking for stocks where there are underlying competitive advantages in the form of brand and an existing land bank which the developer can leverage upon and actually garner a larger share of the demand that will come as a result of the rate cuts. So, all three of them Sobha, Prestige and DLF to a large extent clear those criteria and these would be the three names we would like whereas a lot of others have various other issues and we wouldn’t recommend any of the other names.”