Jul 17, 2017

UNITECH LTD. Buy/Sell/Hold? Mid - Long Term View 17 JULY 2017 For Trading/Investing Positional Funda-Technical Analysis Recommendation

Recommendation: Strong Buy
View : Long Term
Strategy : ?
CMP : bse cash 8.74

We have been giving out a lot of realty sector recommendations over the last 6 months which are mostly doing very greatly. The main reasons being demonetization, then the introduction of real estate law RERA and now GST. We strongly believe that the froth from the real estate sector is getting removed and the frontline companies, the old leaders of the sector are going to lead the rally in stock market as well. Among them are the Indiabulls Real Estate, DLF and Unitech are the main ones. Yes, some of the newly listed midcap players are also racing with this big boys in terms of topline trying to net sales of 1000 crores and more. 
The real estate companies have been trying very hard to pare debt and try to get maximum benefit of the new modi-era economic boom in the country. Unitech has been in the news for all the wrong reasons over the last 6 years and more. After rising to 500 levels in 2008 bubble from its 20 Rs levels, the stock crashed to 20 again and has been trading as a penny stock since almost last 9 years, excepting a couple of years when it traded at 100 levels.
We first recommended the stock at Rs.5 just before 1 month. It has risen 70% since then. We strongly recommend to buy few thousand shares and put them away for 3-5 years for 10-20 bagger return. Cash in once you get 10 bagger. A 50000 investment will become 5 lakh which you could use for a Europe tour or asia tour with your family or buy a new car in next 2 years.
The fundamentals are turning around for good and the company along with all real estate firms are getting 'good' on the back of the threatening environment being created by Modi government for wilful defaulters. The promoter of the firms are almost out of the 2G scam issues and the issues with Telenor group are also sorted out. 
At Rs.5-10 the stock is not at all expensive while investing with the clear perspective of results as given above.

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