CLSA maintains an outperform call on Prestige Estates
Disclosure: Invested
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Serious re rating candidate in large real estate pan india players, after the successful fund raise. Opens up growth path and Debt levels reduces.
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A personal observation about CLSA’s re rating calls. In past CLSA had said Tata power will go through a poor re rating cycle and that the stock will fall from then CMP of 250-280 Rs band to 180 Rs. I hold a good position in tata power and i didnt sell. Every sign about company was positive and management’s commentary was very promising. I hold on and even added on dips. The stock eventually moved up and today stands beyond 400 Rs.
Since then, i made a mental note. Look at CLSA calls but dont trust them!
Though i am positive about Prestige and I am invested. Here are other broker and fund houses calls that i have collated:
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Axis Securities. Buy. TP 2195 Rs.
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Geojit FS. Accumulate. TP 1822 Rs.
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Yes Securities. Buy. TP 3021 Rs. {60%+ upside}
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Rating calls have no accountability. It’s best to look at who the individual analyst is and how their thesis and the price has fared, if there is a correlation.
Most analysts have to follow multiple sectors and jave a target set of reports right after a quarter or earnings call. It’s done like a factory. A lot of them are kids (2-5 years of work experience), you can check profiles on LinkedIn.
Find a good analyst and follow them. Best is find someone in your circle who works in the industry, they can explain how things work and you’ll get an insiders view also.
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The best way to analysis is just get through last Investor Presentation , couple of concalls and last 6 month management interview (Mr.Irfan Razak & teams) you will easily understand the sector and Prestige estate future prospect, Real estate cycle in midway it will easily last another couple of year say 3-4 year , just compare the presales date and future launches ,existing land bank etc. Do your own analysis before investing.
Disc: Invested
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