We recommend this stock on following parameters ๐
๐ Affordability of Real estate is at high as the interest rates are at multi year low(interest rates at 6.85%) and also flat property prices. ๐ Company in its recent investors presentation has submitted that they see high demand for completed projects. Company have net surplus of 3102 crores which provides great liquidity going further. ๐ Company has entered into merger agreement with embassy group & has been filed with SEBI for approval.๐ ๐Post merger, they are market leader in launched projects surpassing DLF , who is market leader at present๐ ๐ They are also no #1 Post merger in land bank by acres surpassing market leaders which is positive sign๐ ๐ With combined entity - annual estimated future rentals potential from planned commercial assets in excess of โน4200 cr ๐๐๐ ๐ Geographical diversification after merger which will reduce dependence on single location which was the case before merger ๐๐๐ ๐ Diversified portfolio mix concentration(both commercial & residential) which can hedge against cyclical up & downs ๐ Stock is trading at 64 which is below book vale(intrinsic) of 73 per share makes the stock attractive๐๐ ๐ Real estate sector has underperformed for the past 3-4 yrs and already bottomed out. We expect revival in the sector in the coming years. ๐ RARE ENTERPRISES(RAKESH JHUNJHUNWALA) had purchased 50 lakh shares @57 - BULK Deal on 12 Nov 2020
On Technical front, stock is into verge of weekly breakout above 67 levels. Target 100+