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| Acid fact of Infra, Const & Realty Sector (26) 06-Feb-08 16:47 | Tracked by (2) |
| | Posted by:  My Multibaggers on ( 06-Feb-08 16:47 )
| | | Price : BSE: Rs 293.35 ( -1.11 % ), NSE: Rs. 293.60 ( -0.84 % ) | People on dalal street are more concerning about future prices of real eastate properties (specially housing).
Parsvnath is 1 of the players in India who sell at very high prices all their construction projects.
Further if we see results of Infra., Const. & Real Estate companies; we can observe the slow dawn in growth rates (like YOY or QOQ growth)
Though margins are improving QOQ (like NPM, OPM,...); this will never happen continuously. In fact its sign of saturation point coming near.
If parsvnath can show growth of 120% this year & will promise to show same growth rate (or at least 50% to 60%) in next 2 fiscals, then only we can expect levels of Rs.1000+.....
This is the fact that we all have to consider before day (& even night) dreaming.
The same thing applies to Unitech, DLF, Akruti, HDIL, Omaxe and all other stocks which are in Infrastructure, Construction or /& realty business.....
Speculation is the only way to see great upside in realty stocks in next 2 years. But who will do this...me...?you...?speculators...?mutual funds...?FII's...?Fl's...?HNI's...?
Parsvnath is available at less than 9 P/E when we consider EPS of Rs.33 for this fiscal. When it got listed 1 & half year back, it was trading at 70+ P/E
See, slowdown in sector will batter all shares in that sector for long period (Eg.; IT, Cement)
Is this sector too giving signals of Slow Down...?
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