Prominent Stocks From Realty Sector

1. Unitech : Testing a crucial Red resistance line, good if sustains above, else ...
2. DLF : Previous resistance at 616.50 turns into crucial support
3. HDIL : Supported at 480, moving up in a rising Blue channel
4. Indiabulls Real Estate : Supported at 420, testing the Blue rising line
5. Mahendra Gesco : Triangular action holding crucial 456 level

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Buy IVRCL Infra below 380

IVRCL continued its splendid performance in Q1FY08 with a growth of over 55% to its topline as well as bottomline. The company als o added over Rs21 billion to its order backlog which currently stands at Rs 95 bn. The company had raised over Rs5.5 bn through the QIP route during FY07 which would help the company meet its funding requirement for various BOT projects and meet the working capital requirement. The Company has also recently successfully launched the IPO of its real estate subsidiary IVR-PUDL and has raised over Rs 7.8 bn from the same. We believe that the company's growth trajectory will continue in future and the pace of order accretion provides added visibility. We recommend a buy for this with a view of 9-12 month with a target price of 510.

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Hold Voltas, Good returns expected!

Equity Advisors are of the view that one can definitely hold on to Voltas for good returns. In the first quarter, the company will be in a position to show good numbers.

Fundamentally, Voltas is looking quite strong because after the stock split though the stock has become less attractive on fundamentals front in terms of reduced EPS and increased PE multiple. But after the Q4 results that the company has declared it could show tremendous amount of growth rate in its fundamentals and that is a reason that the PE multiple has become attractive now.

Particularly the engineering contracts that it has bagged and the way it got good pipeline from the engineering contract side and between January and April this year it also got good amount of orders which has shown a 30% growth in its room air conditioners business.

All put together company could show good numbers and we feel even this Q1 also company will be in a position to show good numbers. Put together company could come quite very well on a part of improving its numbers irrespective of increased number of shares that make us feel that one can definitely hold on to this stock for good returns.

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DLF urges govt to down interest rates

Hurt by the establishment's statements that have the potential to dampen demand, the country's largest real estate player DLF Ltd today asked the government to rather focus on augmenting supply and cutting interest rates to further boost growth in the sector.

"The government should think of augmenting supply and not curtailing demand, which is a theoretical exercise," DLF chairman Kushal Pal Singh said.

Only last week, finance minister P Chidambaram said that the government was keen to curb demand in overheated sectors like real estate and housing. Incidentally, the finance minister's statement came when bidding process for the initial public offer of DLF was going on and the impact was seen immediately on Dalal Street with a sharp fall in the share prices of listed realty firms. Market observers said that the statement also hurt the investors' sentiment toward the IPO.

DLF could raise Rs 9,625 crore through the public issue - subscription for which closed on Thursday. Bids were received for 3.5 times the size of the issue comprising 17.5 crore shares of Rs 2 each.

"The only way to contain the increasing (property) prices is to flush the market with more supply than demand. (and) by thinking positive," Singh said.

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DLF fixes issue price at Rs 525/sh. Gains on listing is least expected !!

Real estate major, DLF, which entered entered capital market with an initial public offer, IPO of 175,000,000 equity shares of Rs 2 each, has fixed its issue price at Rs 525 per share.

Considering an issue price of Rs 525, at an interest rate of 15% (Rs 22 per share), the breakeven comes to Rs 547 . If retail investors have DLF shares, they cannot expect anything exciting in terms of listings and if it does it will be highly unexpected. We feel that there is not much to play on listings in terms of how subscriptions panned out and real-estate companies have done, in terms of how they listed vis-a-vis subscription numbers. With 575 million sq ft of land to be developed over the next 10 years, DLF is one company to be held over a longer period of time. If you are there in queue, be there for long... you'll get reward. Short term player...well DLF is not for You!

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DLF somehow subscribed amid all brouhaha!

DLF IPO has wrapped up its issue. The subscription numbers are 3.47 times overall, while the qualified institutional buyer, or QIB, category was subscribed 5.13 times. And the high networth individual, or HNI, category was subscribed 1.17 times. However, retail was subscribed only 0.97 times.
Analysts feel that the numbers are inline in terms of how the overall and QIB picture panned out. But on the retail front, they find the numbers disappointing as it did not get subscribed even once as was expected.
A lot of big investors came and put in money in the issue. Deutsche AMC put in bids of USD 500 million, while HSBC pumped in USD 650 million, the Dubai Investment Group put in USD 550 million, TPG Axon brought in USD 250 million, Aberdeen put in USD 100-150 million. Three firm, Blackstone, Blackrock and Nomura brought in together in between USD 50 and USD 100 million.
LIC has put in a bid of roughly Rs 500 crore, while SBI has bid with Rs 500 crore. RIL, Reliance Capital and Reliance MF put in bids of Rs 200 crore each.

Considering an issue price of Rs 500, at an interest rate of 15% (Rs 21 per share), the breakeven comes to Rs 521. If the issue price is Rs 515, with the interest rate remaining the same, the breakeven comes to Rs 536. Similarly, if the issue price is Rs 525, the breakeven is at Rs Rs 547 and in a best case scenario, at an issue price of Rs 550, the breakeven comes at Rs 573, with the interest rate at 15%.
Analysts say that if retail investors have DLF shares, they cannot expect anything exciting in terms of listings and if it does it will be unexpected. They feel that there is not much to play on listings in terms of how subscriptions panned out and real-estate companies have done, in terms of how they listed vis-a-vis subscription numbers.
With 575 million sq ft of land to be developed over the next 10 years, DLF is one company to be held over a longer period of time, feel analysts.
The positive factors for DLF are its brand value, execution capabilities and its large land bank. The concerns are its concentration of land bank in Gurgaon and NAV per share value of Rs 475. Most South East Asian real estate giants trade at 1-1.3 times market cap per NAV.

Finally I should say DLF manage to succeed. With all initial malpractice issue with minor shareholders, then almost a year delay due to market crash and finally all media news about its aggressive pricing DLF emerged as a winner. They almost did everything that they could have to make it success and they did it. DLF finally succeeded in its purpose amid all brouhaha. Well done DLF!!

Please share your views in comments, if you have anything to say...

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