DLF has resistance around Rs 240, says PN Vijay

DLF has resistance around Rs 240, says PN Vijay, Portfolio Manager, askpnvijay.com.
 
Vijay told CNBC-TV18, “One would still be a bit cautious on DLF, because DLF’s debt is very monumental. They took ages and ages to sell Aman Resorts and apart from the micro market of Gurgaon the rest of Delhi NCR is quite soft. So I do not see DLF as a good exposure in the realty stocks.”
 
He further added, “Some of the realty stocks are doing really well. We have talked about them, especially the Bangalore micro market is doing extremely well and so you have to look at geographies for real estate and DLF is too big and too tough a company to restructure in a jiffy. So it would go probably up to Rs 240 in this current rally that they have had in real estate, but not beyond that. People are taking on realty risk. People would buy companies with lower debt, better delivery schedules, more usable land banks and this sort of thing and DLF surely does not qualify. Real estate is one sector where you do not buy the leader. Normally if the sector is rallying you go and buy the leader, but real estate is surely not one of them.”

“NBFCs as a sector has come to stay and they are looking at wider horizons and fortunately for us there are some good NBFCs to be picked up. In the housing space for example, you have a LIC Housing Finance. In regular NBFCs you have an L&T promoted company, you have a Mahindra promoted company, and you have a Shriram promoted company. So you have good managements and you probably have some of them getting into banking in the next six months or so.”