HDIL, DLF safer bets in the high-risk realty space

We had the Finance Bill coming out of late and the Finance Minister did announce the tax concessions, the service tax would be levied on 25% of the gross value of property as against 33%. In this light, how would you play a stock like HDIL?

Sajiv Dhawan: I do not think it makes too much of a difference because from the negative point of view what had to be factored in was factored in very soon after the budget.

So yes, some relief to the companies which were selling on maybe on the lower end of the housing band and you have seen a bit of a run up actually on the day of the announcement itself and the day after but that would not make a significant impact on our decision whether we would buy on HDIL just because of that one piece of news.

Your comments on Indiabulls Financial Services, Indiabulls Real Estate and Colgate?

Sajiv Dhawan: The only one that we track is real estate and that has again been a perennial disappointment. Yes, it is back to 170 but when last time it was at that price, the target was given around 200. It has seen a low in bounce back but again if you are buying this counter, then you are playing on the high risk side and investors have to distinguish if he want the high risk real estate stocks where the targets maybe substantially higher but also will correct equally harshly on the downside.

That is why we prefer stocks like HDIL and DLF. We feel the fundamentals are slightly better on those companies.