Realty Expert Sends Blood-Curdling Warning About Realty Sector & Stocks

Dr Sanjay Chaturvedi, the editor of Accommodation Times, a leading publication, has sent the grim warning that the worst is still to come for the realty sector and that investors should dump realty stocks now

If you are an investor in realty stocks, you have good reason to be aggrieved because the entire realty sector has grossly under-performed. On a YoY basis, the BSE Realty Index has lost 21%. The YTD loss is 14%. Even over three years, the Index has lost 35%.

Samir Arora, the whiz-kid fund manager of Helios Capital, was the first to sound that warning that the realty sector would see heavy turbulence. “Real Estate Sector Will Be Killed In NAMO’s Black Money Crusade” he announced in his typical dramatic fashion.

However, other leading stock wizards took a different view.

Ramesh Damani, the Nawab of Dalal Street, advised that if we want mega bucks, we must forget Pharma and IT stocks and load up on realty stocks. He opined that the realty stocks are close to bottoming out.

Ramesh Damani’s theory was endorsed by other gurus like Rakesh Jhunjhunwala, Radhakishan Damani, Ajay Piramal, Prof Sanjay Bakshi,Porinju Veliyath and Nilesh Shah, by each of them loading on to their own favourite realty stocks.

Dr Sanjay Chaturvedi, the editor of Accommodation Times, is regarded as an expert on the realty sector owing to the fact that his publication is devoted exclusively to the happenings in the sector.

In a series of tweets, Dr Sanjay Chaturvedi has projected an extremely pessimistic scenario for the realty sector and advised investors to dump realty stocks:

The implications of a prolonged slow-down in the realty sector will also be experienced by other stocks such as Cera Sanitaryware, Kajaria Ceramics, Century Plyboards, HSIL etc. Even housing finance companies like Repco Home Finance, etc are also in the line of fire.

In the circumstances, it is advisable for us to be cautious. While selling realty and allied stocks at this stage is not prudent as they are already at beaten down valuations, fresh allocations to the sector ought to be avoided till there is clarity about recovery in the sector.