I have two questions on realty stocks. Is this the right time to buy real estate companies and what is your opinion on Oberoi Realty after its quarterly results?

Let me address the issue of realty stocks first. Currently realty stocks are under pressure due to tightness in liquidity and weak off take in the key markets. Probably, people are waiting for the outcome of elections and hence it may be a good idea for you also to wait for the outcome of elections and then take a call on realty as a sector.

In case of Oberoi realty, the company reported a nominal 9% rise in net profits to Rs.156 crore for the March quarter while the total revenues rose sharply by more than 70%. While the full year profit growth has been much better at over 60%, the pressure is showing in the last couple of quarters as costs have been escalating. Oberoi has an advantage that it operates in the premium home space where the competition is lower, the market is less price sensitive and premiums are a more. So, within the realty space, Oberoi does remain an attractive still.