Profit booking may be seen in HDIL, Peninsula Land: Tulsian

Profit booking may be seen in HDIL and Peninsula Land, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I don’t think that real estate stocks have really reached to the fag end of the rally because if you see we have been talking on this for last one month or so and in fact I have recommended many of the stocks in that space as well.”
He further added, “Just to give an example of Peninsula Land, the share is now ruling close to Rs 50 and the book value of the stock is at Rs 60 and the company is continuously on a growth trajectory and if we get to hear that company has acquired some new pieces of land in the central Mumbai but if you go by the rates and the off take in fact in the last maybe couple of months we have been seeing good off take happening in the cities like Mumbai, Bangalore, NCR region. We have discussed that also last week that new municipal commissioner has approved 700 projects in Mumbai in last couple of months so obviously those projects are all for a launch and the kind of rate increase which we have been seeing though it is not going up swiftly but people are again returning back under the construction project, having a long gestation period.”
“Same thing is happening in NCR region in fact opening of the Yamuna Expressway is really put a new lease of life in the Noida and Greater Noida space where we have been seeing the in fact an increase of about 15-20 percent in the land cost happening there. Similar is the case with Bangalore and whatever companies which we have been talking whether you talk of Orbit Corp, Peninsula land, HDIL, Indiabulls Real Estate, Ajmera Realty in fact all of them have their space or their presence in all these three pockets. I am not too bullish on the Chennai, Hyderabad or maybe the other pockets of the country but these three are really showing good volume and good traction happening in respect to the new launches as well as the off take. So, obviously with this kind of scenario remaining the companies which have their good execution capability and those who have been on with their projects are continuing to perform quite well and in fact the best part is that that the share have been virtually ruling at a very low valuations at a very low price.”
“Going forward still I maintain my positive view. You may see a near term corrections, the profit booking may come in HDIL at Rs 110-115. We may see the profit booking coming in Peninsula also maybe at Rs 54-55. I am not saying that one would see a linear rise continuously over next 2-3 months but yes if you take a long term call maybe with a view of 6-12 months I think still people can expect a rise of about 25-30 percent in this stock from the current level which have already risen by about 15-20 percent.”