Real estate quite difficult to analyse: Anand Tandon, JRG Securities

Anand Tandon, CEO, JRG Securities, in a chat with ET Now talks about real estate.

What is your take on real estate - in particular DLF, HDIL and Unitech? Do you think there is limited downside for these stocks from these levels?

I find real estate quite difficult to analyse for the simple reason that there is still not full clarity in terms of ownership of land, how much they have paid, what is the margin that they have paid on, what is actually in the company and what is outside, what is contracted and what is not, how much is placed and so on.

So without all that information, I do not think you can take a real call on it. You are just taking a macro view and saying ‘okay, at this price, it has fallen off largely and, therefore, you should be looking to buying’. Real estate in India is grossly overpriced, grossly overstretched compared to anywhere else in the world. Therefore, there should be a cyclical downturn in it at some stage provided the RBI steps in and put the screws on in terms of money availability to that sector.