Bearish on real estate, sell Everonn Education: Saurabh Mukherjee

ET Now spoke to Saurabh Mukherjee, Head of Equities, Execution Noble, on his views on Everonn Education and real estate stocks.

You have a sell call on Everonn Education. What's the lower bottom that you may be now seeing for the stock?

We expect Everonn to go towards Rs 510 odd, which is around 15% downside from where it is. We were buyers of the stock until a couple of weeks ago when the stock rallied spectacularly presumably on the back of the news about the open offer, which is now public news. So with the open offer impending and with likely dilution of current holders, we think it is time to take profit on Everonn Education. It has done very well for our clients and if anybody out there holds the stock, I would suggest have a think about selling it potentially in the open offer itself.

Would you book profits if you had indeed gone long on real estate stocks a week back?

I do not think Indian real estate stocks are going to do particularly well over a six-month horizon. They have done extremely well over the last 14 months. There are reasons to believe that in the two main metros, house prices have reached fairly rich levels and from the lenders' numbers, you can see lending volumes are under some pressure. So I can see some pressure on real estate stocks over a long-term horizon. The bull case is unquestionable for Indian real estate.