Mahantesh Sabarad of SBICap Securities told CNBC-TV18, "Basically you will notice that the market has a preference largely to Bangalore based real estate company. You have Sobha, you have Prestige, you have Purvankara. Purvankara simply because compared to the other peers, it is trading much cheaper below book value currently compared to others like Sobha is 1.8, Puravankara is just about 0.8 times its book value. What we think is gradually going to happen is that their cash flow from operations is going to gradually turn positive. So there will be easing on the debt side, so debt equity ratio is set to fall so that would mean from a balance sheet perspective an improvement in ROC as we go forward."
"It is a stock which is trading 0.8 times price to book value, the stock can rerate itself higher. The macro environment again is favourable. We talked about IT sector, so Bangalore is an IT-ITES dependent kind of real estate market. So Purvankara would be a good bet," he added.
Disclosure: Analyst and his firm don’t hold the above stock and they are in the process of applying for the analyst certificate under the new regulations.
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