Recommend being selective when entering real estate stocks: KR Choksey Securities

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on the real estate stocks. Excerpt:

ET Now: Would real estate be a pick with you?

Deven Choksey: Selectively, one cannot say that one would not like to buy it. It is an opportunity in many select companies, including some of the real estate companies. We will have to go company by company in picking up your ideas.

As some of the managements or the promoters in the past have shown the appetite for higher amount of risk and the inorganic growth, so they could be little vulnerable to the portfolios. Also, they may damage the portfolio to an extent that if the situation does not augur well for the economy. Otherwise, in many of the real estate companies, you see the opportunities available like Sobha Developers or Mahindra LifeSpace. These are some of the business models which are asset like models; that is where you could possibly see the growth continuing in these companies.

They may give relatively less appreciation, but at the same time, they would be solid stocks in the portfolio. Hence, yes, some of these companies could be kept in the portfolio or held in the portfolio.