One of the best long term investment opportunities available today is the stock of DLF — India’s largest real estate developer, and a constituent of Nifty 50 Index. We believe property prices in India have increased nothing compared to the rise we will see in next 5 years. Thanks for QE2, global liquidity will continue to flow into India during the next 5 years, and all commodity prices including property will increase in the emerging markets like India; property prices may increase significantly more than metals. The recent plot sale of Rs 5 billion by DLF is a good example of how they can start monetizing land bank assets, which DLF has in plenty. If you want to trade DLF for Rs 20-30 gains, that’s your decision. However, we believe one can confidently buy at any price between 250 and 300 (which we got last week as well) and hold this stock for over 250% gain in 4-5 years, by when the stock may cross Rs 1000.
Tag Archives: DLF
Indian Stock Market Analysis -21Nov2010
The interesting thing in this market market correction is that many stocks are at 52 week lows and many are near 52 week highs. The stocks that did not participate in the Sept-Oct rally are falling as rapidly as stocks that rose 30-50% and now correcting.
Banking stocks, which led the recent rally, are down with profit booking, but once the market stabilizes and starts moving up, they can move up again by 25-30% in the coming months. Among large banks, ICICI Bank looks good with 1 year target 1500, which is 35% upside from current levels. City Union Bank has posted good results, and is our top pick in smaller banks, and it can gain 50% over next 12 months. Continue reading Indian Stock Market Analysis -21Nov2010
Indian Real Estate company – Vipul
Vipul is a mid-cap stock in the Indian real estate industry, and the company’s stock is trading at attractive pricing and much lower valuation than 2-3 years back because most real estate companies are emerging from difficult times on 2008-2009. While Mumbai real estate companies like Orbit Corp and Peninsula Land are delivering strong QoQ numbers, other real estate companies in India like Vipul (Delhi based) are lagging behind in terms of demand strength. But demand will return strongly across metros and lareg cities, in a year or so when the Indian economy returns to full steam. That scenario makes Delhi based real estate companies like Vipul a good buy today. The market cap is about Rs 275 cr for land and building assets of over 1400 cr. Continue reading Indian Real Estate company – Vipul