HI Samir,
Theere are two ways to look at a stock
1)calculate intrinsic value of a stock and buy it at some discount.
2)Estimate growth potential of a sector,examine management’s ability to capture it and
participate in it at any given point and stay with it for longer term.
The first approch works if one is banker who is lending money to a business.The second is for an investor who wants to earn returns more than that of lending money.
Now comming back to sector,we must understand that next meaningful demand will come
from rural and semiurban markets and this is going to be a gamechanger for entire real estate sector.Both mahindra and godrej understand rural markets very well,have very good rural brand recall and pan India presence.There is immense opportunity waiting to becapitalised.There are very few companies in this sector who can achieve this.
Real estate demand in metros is slowing down and expected to remain slugish for considerable period of times.Hence companies identified with pure urban markets are
trading at discount to their intrinsic value.
Disc- no investments in any of these.But as I am positive on rural/semiurban/fringe housing have expo to gruh finance.