2013 will be a Rate Cut Year ~ Real Gains for Selective Real Estate Companies
Some Selection Criteria
- Commercial or Residential Projects Closures ~ Beneficiaries of FDI in Multi Brand Retail perhaps !
- Zero or Low Debt
- Mumbai & Gujarat Centric
- Promoter Pedigree and Accepted Level of Corporate Governance ~ Where Real Estate is involved the Promoters tend to keep the ‘Meat’ with themselves through a Layer of Holding companies or entering into Fronting Partnerships
- On a Relative Basis an Attractive Price to Book ~ preferably below 1
- On an Absolute Basis a Low Market Cap to Asset Values
- Real Estate Business or Wealth may deliberately not be Core Business presented
I have Three already identified where I don’t see much downside though one needs to be patient with such holdings
There are other Three Controversial Players too that will see an upside !
Oh ! and has anybody factored the Powai Property of Larsen & Toubro in it’s Valuation ! ? ~ it’s not one of the three though !
There are Many in the Real Estate Business who expect a revival in 2013 ~ with more buoyancy in selective pockets
And may I remind you that Real Wealth in the last decade has been in Property ! ~ many have even become ‘noveau and filthy rich’ because they took the Property Risk at the Right Time and Right Price as Millenium dawned on us ~ of course I do not condone those who ‘captured’ property by unfair,immoral,foul,coercive and criminal means ~ and also how many of them flaunt arrogantly at Flashy and Opulent Family Weddings where they gift Mercedes and BMW and Audi Cars and Ipads and Pleasure Trips to Switzerland to invited Guest winners in ‘Housey Games’ !
Success should be measured by how you Balance when you don’t have such Wealth and how you Behave when you have it ! ~ Sadly we have become a Nation of Status Addicts !
Cheers ! and Happy Hunting !