Disappointing Q3 numbers, high debt likely to weigh on DLF: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his views on DLF. Excerpts:

ET Now: what do you do with the name like DLF in realty?

Deepak Shenoy: That is a tough call. In fact, there are news – one is that they are appointing a manager for the REITs. I do not know if they can do that given that SEBI has a ban on them so they might be betting on the SAT reversing that decision.

We do not know how big REIT demand is going to be or what the pricing is going to be and if we have an history of DLF, it will be that the pricing will be too high but we do not know about that.

Real estate on the whole is negative sales. Their numbers were pretty bad this quarter and debt has also gone up so we are not very enthused about the stock unless they can actually price the REIT and get it off their books in a reasonable way. There is no reason to really rerate this stock. At the 160-170 levels, it has got more downside than upside but as a disclosure, we would be interested in some of these stocks.