HDIL, Puravankara, Orbit Corp top realty picks: Ambit

MUMBAI: Shares of realty companies have been facing tough times lately in the wake of 2G scam and housing loan scam. However, Ambit Capital is of the view it is good opportunity to enter stocks that are not exposed to these scams.

“We believe that recent 2G scam coupled with this Loan scam presents a good opportunity to enter stocks not exposed to these factors. HDIL (55% Upside), Puravankara Project (60% Upside) and Orbit Corporation (127% Upside) remain our top picks in the coverage universe.

Among the "Not Rated" universe we would advise investors to consider, Sobha Developers (for its D/E of 0.6x), Oberoi Realty (for being debt free and having surplus cash post IPO for land acquisitions), Prestige Estates (for commercial exposure to the Bangalore market).

We would advice investors to avoid DB Realty & Unitech until some clarity emerges on the 2G telecom investigation,” said Parikshit Kandpal, analyst, Ambit Capital.

At 11:30 am; shares of HDIL was down 4.50 per cent to Rs 197.30 on the NSE. It touched a low of Rs 194.30 in trade so far.

Puravankara Projects slipped to Rs 104.95 down 1.64 per cent on the NSE. It touched a low of Rs 103.70 in trade so far.

Orbit Corporation was at Rs 84.05, down 3.50 per cent on the NSE. The scrip touched intraday low of Rs 80.60 and high of Rs 88.60.