SAT order positive for DLF stock; all eyes on pickup in residential property demand: Hemindra Hazari

In a chat with ET Now, market expert Hemindra Hazari shares his view on DLF.

ET Now: What is your view on DLF stock?

Hemindra Hazari: The SAT order is a big short-term relief for DLF because the real estate space is cash trapped today; residential properties are not moving while demand for commercial property too is slow.

Therefore, there are two very positive outcome of this particular SAT order. One is that DLF can raise equity from the market. In addition, it has lifted the reputational risk that was hanging over DLF.

We have seen some brokerage companies have re-initiated coverage on the stock. These are two are very strong short-term positives for the stock. Having said that, the main underlying factor would be pick up in residential property demand.

It is because there is a huge surplus and inventory of high-income residential properties unsold in the major metros which requires a demand revival in the economy. I am not very optimistic about it. So, even if interest rates were to come off, that would just give you short-term relief to DLF and other interest rate-sensitives. However, it would not result in a very major demand revival which the Indian economy is unfortunately experiencing currently.