Some analysts, backing DLF, have felt that the sharp fall in this stock in recent times, in line with others in the sector and the market, was unjustified. Realty shares have, of late, fallen on concerns of slowdown in demand for property, which has led to softening of prices in several pockets of the country.
DLF shares have more than halved from its highs in mid-January, while the BSE’s Realty Index has fallen 47% in the period. Analysts tracking the company said DLF should not have been clubbed with the rest in the sector, given its better focus on commercial assets compared to several of its peers and diversification in its revenue portfolio.
They say commercial properties will be more resilient to fall in prices than residential. But, pessimists argue that a slowdown in information technology and related sectors, led by a US recession, ensures that even commercial properties are not totally insulated from drop in prices.
They estimate that these sectors, till recently, contributed 50-60% of the key office properties in the country. It is said that such uncertainty has resulted in the company delaying its plans to list DLF Office Trust, a real estate investment trust(REIT), on the Singapore REITs market.
Investment in Stocks is subjected to Risk.
The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip.
Past performance is not benchmark for future returns. This may either over perform or sometimes under perform too.
1 comment:
Its a good post. I like the article and information provided by you in the blog.
term plan calculator
Post a Comment