Bullish on real estate, bearish on banks: Dimensions Corporate

Ajay Srivastava, CEO of Dimensions Corporate Finance Services, on Friday, said that real estate is a sector where enough money can be made.

“Real estate, to me, is still the sector where there will be enough money to be made because this is just the beginning. And if the government policy is that they will give permission for more and more high rises, the floor area ratio (FAR) goes up. It's like multiplying and quadrupling your money as you have invested in it. So all the big developers, that is the listed stocks, have got huge land banks and if they got FAR increased by 2-3 times, you are talking of a humongous amount of pure profit rolling into the company. If people are hungry for risk, real estate would offer them the best opportunity even today,” he said.

On banks, Srivastava said, “What I don't like in this market is banking. Seeing the price war on the housing loan market, and people still expect banks to make supernormal profits. I can't argue with the market. So, my lowest priority is the financial sector at this point in time. The real estate sector offers great opportunity, but the market is market, it can defy logic to say why there is a price war in the housing loan market but the bank stocks are going up.”