Cautious on real estate: Amit Khurana, Mangal Keshav

DB Realty it will be the third largest listed entity from the real estate space. Even though brokerages have not been upbeat about this story, institutions have participated in it. What’s your sense?

From the sector side, more or less it is very much in the pricing on the current valuations. Our sense is that while we saw a significant rebound in the demand for real estate, especially the residential properties, our sense is that there is very much with the stock prices as of now.

We would also wait and watch as to what signals the Budget sends out because we are expecting a rollback on the excise duties, which could possibly increase the costing for some of these residential units. Commercial is still in very much in an oversupply situation whether it is the key metros or the tier 2 cities. It is very much in the oversupply zone. So we would be fairly cautious on the real estate sector as of now.

Particularly DB Realty.

Yeah it could be because they are in a very different sort of segment wherein they service the higher end of the residential properties. So that will have its own challenges to face. So I would probably keep my hands off that for the moment.