Multibagger in 5 years? Buy HDIL says PN Vijay

HDIL could be a multibagger with five year point of view, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "There could be a bottom somewhere in the real estate sector in India because the correction here has been very severe and many other good companies at least have taken some very strong measures to cut the debt and improve the occupancy if you will like to call that. That is an amount of flats and offices sold as compared to the new."

He further added, "If you look at some other statistics coming out, the new additions are becoming very slow. Unfortunately, in India we don’t track the new housing stats and employment the way we track inflation. If we track these two, we will get to know how fast the slowdown in the economy has been. They are very startling indeed. So the new housing stats has come down to zero I feel because of all this supply-demand imbalance is getting corrected and those companies, which are able to reduce their debt successfully would come out as probably multibagger over next five years."

"HDIL could be a multibagger if you take a five year point of view,DLF could also do extremely well once they have applied the scissor relentlessly and cut off all their non-productive assets. So we have some real scope for bottom fishing there but nothing less than three years."

source :moneycontrol.com