Stock Buzz: Indiabulls Real Estate is a good short term pick, says Nikunj Dalmia
It is time to look at some good quality real estate stocks and Indiabulls Real Estate naturally comes to my mind. Now markets they love to hate real estate stocks but this is one real estate stock which in last one year has given a positive return.
I have picked up from some fund managers who own the stock is that the management of Indiabulls Real Estate is looking at buying back some shares from the Employee Welfare Trust. Now Employee Welfare Trust of Indiabulls Real Estate owns about 6% of the company. The management already has done one round of buyback because their cash flows have improved.
My understanding is that this buyback will be announced in the second half of this year but markets tend to adjust stock prices ahead of that. The last quarter for Indiabulls Real Estate was a poor quarter. They reported a sequential decline but this quarter, things could look up. They have launched a flagship project in Mumbai in Lower Parel and because of that scheme has been strong, they are likely to report a sizable jump in their quarterly profits because of the Mumbai real estate project.