Don’t worry why L&T is available at attractive valuations; it is a good entry point: Dipan Mehta

economictimes.indiatimes.com:

Dipan Mehta, Director, Elixir Equities, says “one should never analyse L&T on a consolidated basis because due to the software business and the NBFC, you will never realise that value. L&T is never going to sell off those stakes and unlock value for its shareholders and those companies are already listed. So, I do not want to double count them when I am doing the valuation calculation for L&T. If you start to value only the EPC business and the unlisted subsidiaries, then it is a slightly reasonable valuation.”


We have been talking quite extensively about the real estate space as well as a whole, the kind of promising opportunity given that there are a few formidable players in New Delhi, Gurgaon, etc. Is there a ripe opportunity still at play when it comes to real estate?
At corrections, why not? And, although a lot of the real estate stocks are quoting at or around their net asset value, the fact is that the opportunities are keeping on growing for the sector and these companies and I have seen quarter after quarter because of either joint development agreements or because of price increases or acquisition of land bank, these companies have started to report even higher and higher net asset value or the net realisable value of these companies.

So, very positive on real estate.
We prefer larger companies, especially companies like Godrej Properties, a disclosure we and our clients are invested, probably because of its de-risked business model.

It operates in many cities and in many categories and to an extent that acts as a good diversity and I would say risk mitigation strategy.

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