Realty more of a speculative play; like Godrej Properties, Oberoi Realty on fundamental grounds: Gorakssakar

In an interview with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com, shares his views on real estate stocks.

ET Now: A bunch of real estate stocks have moved up in a pattern. There is no probably reason for rally in most of these names. Still these stocks are playing out well. Are you advising your clients to buy into these names?

Avinnash Gorakssakar: Real estate is more of speculative play and largely goes with the momentum.

It remains to be seen how sustainable this momentum is. The RBI will review the monetary policy on Tuesday. There are some expectations that the apex bank would announce liquidity measures aiming at reduction in cost of borrowings. Most of the real estate companies, be it DLF, Unitech or HDIL are sitting on large debts. In fact, for HDIL, the quarterly numbers for Q3 were pretty decent. But the real challenge for these companies is how do they go forward and reduce the debt. This is the one thing that most analysts are concerned about. I would say that clearly from the quality names, I would still like to bet on something like Godrej Properties which is not very liquid in nature. I also like Oberoi Realty. These are really great stocks because they give you those great moves, but from a fundamental perspective. I would say that Godrej Properties definitely offers better value, if you really want to put your money on the real estate sector.