- Wealth PMS
So I’ve come to an understanding that the real estate sector is going to get destroyed. This diwali will be their worst yet, in my opinion. And Unitech is probably the highest P/E play in the sector, and focussed largely on Delhi/NCR where the prices haven’t yet fallen quite that much.
Delhi/NCR is a weird place that way – lot of black money, and very good roads/infrastructure. Still, there is enormous amount of housing becoming available and literally everything hinges on Diwali. With interest rates staying high, Unitech is bound to suffer – at least as much as the others. Brigade and Sobha have suffered hugely – P/Es are now down to 10 or so – and DLF is also valued at a lower P/E. Yet, I believe these companies tend to overstate earnings, which will only take them so far.
So, another short. Future traded last at 167.7, and the lot size is 900, for which I can short three lots with a 10% exposure.
The spreadsheet is now open for view.
Ignore the small profit on ICICI – it’s too early to gloat. Note also that I don’t have price targets. I don’t have a “system” way to trade this. In fact I have no real positions on it in my personal account, because I only trade systems nowadays.
And as usual, disclosure: No positions, but I could have any position, even the reverse (long), because I trade only what my computer throws out. This “strategy” is not meant to be advice and is purely educational.