“This is the monsoon quarter and we should not judge the cement companies’ performance by this quarter, but Q3 onwards we believe that cement companies’ performance will start improving and it will definitely be worth watching the space,” says Sudip Bandyopadhyay, Group Chairman, Inditrade Capital.
What do you make of this uptrend that we are seeing across all real estate names? Do you expect this momentum to continue and big gains as far as the stock prices are concerned?
If you are looking at a one-year plus time horizon, real estate is an excellent play. It was beaten down mercilessly over the last couple of years and from there on, the upswing has started. Very clearly, we are witnessing strong demand as far as residential, luxury residential and even commercial in most of the metros and mini metros are concerned.
This is a sea change compared to what we were experiencing some time back. Also one must say here that a lot of things which were fluid and not clear as far as real estate is concerned have fallen in place whether it is the GST issues pertaining to real estate, whether it is RERA coming in place in most of the states and also the Ind-AS new accounting standard adoption.
I think things are much more clear as far as real estate is concerned on the accounting and governance part. Most of these companies, if they had some unrelated diversification and other things like
, have got rid of that and they are pure play focussed real estate players, focussing mostly on one particular metro leave aside
which has got a good portfolio in three-four cities.
Most of the other players like Oberoi and DLF are focussed either on Mumbai or Delhi. Even some of these companies in the south, particularly Prestige and
are focussed in Bangalore. So, this focus has come back, governance has improved and the demand for the product is strong. This is a very good recipe for excellent results over a period of time. Price has shot up but for somebody having a long-term time horizon, it is a good place to move into even now.
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The cement bulls are saying that cement is not a global commodity. If you are bullish on real estate, you better be bullish on cement; but the bears are insisting that
