Parsvnath Developers has target of Rs 78: Tater

Parsvnath Developers has target of Rs 78, says Aashish Tater of Fort Share Broking.

Tater told CNBC-TV18, "Parsvnath Developers has been a bet right from Rs 40 odd levels where we suggested to go long and short on Unitech or DLF and it worked very well for us. In fact Parsvnath has been a strong outperformer in the reality space. Now what we liked about the company was that the company was focusing on reducing debt by diluting its stake at SPV level. That means by guaranteeing an IRR of 14-15% to Sun Apollo and other private equity players they have actually been able to reduce the financial risk and perhaps that has been liked by the markets."
He further added, "Now we have again renewed our strategy on stocks when we suggest that you should go long Parsvnath and short on DLF at a ratio of around 3.5 times that means DLF at Rs 205 versus Parsvnath at Rs 60 odd levels will mean a ratio of 3.5 and we have a target of 2.8 times because we are seeing DLF to be in the range of Rs 180 to Rs 190 and above 64 the Parsvnath would give a fresh breakout for a target Rs 78."
"The promoters of the country have actually gone and acquired through a creeping acquisition manner even in this turmoil times which clearly shows the confidence of the management to the stock and thus we are keeping a stop loss of Rs 55 for this particular pair trade for Parsvnath on down side or a ratio of 3.72 on either side if gets triggered the position should be close. But we feel that 15-16% can be made on this pair trade and if someone wants to keep a plain vanilla long on Parsvnath do keep a stoploss of Rs 55 for a target of Rs 78."