BackDB Realty share price hits 5% upper circuit on second day in a row. Buy or sell?
DB Realty share price has been rising after announcement of settlement agreement for loan repayment with RCFL, say experts
PremiumStock market today: After hitting upper circuit on Thursday session, DB Realty shares locked-in 5 per cent upper circuit on second day in a row in early morning deals on Friday. DB Realty share price today opened upside and went on to hit upper circuit within few minutes of stock market's opening bell today.
According to stock market experts, the realty stock has been rising after the announcement of settlement agreement for loan repayment to Reliance Commercial Finance Ltd or RCFL. DB Realty Ltd has informed Indian bourses about the settlement agreement with RCFL for repayment of loan in various tranches.
Stock market experts are of the opinion that after the announcement of settlement agreement for loan repayment in various tranches, market is buzz that DB Realty's debt will go down from its balance sheet in near future. They said that company's order book is already strong. So, the current rise in DB Realty shares may continue further and the stock may go up to ₹120 apiece levels in short term.
Speaking on the reason for rally in DB Realty share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "DB Realty shares are rising due to the short term, buzz after the realty company's announcement about the settlement agreement by its subsidiary Goregaon Hotel for loan repayment in various tranches by 31st March 2025. This would lead to lowering of debt of the company leading to improvement in margins of the realty company as its order book is already in sound condition." However, Gorakshkar maintained that the trigger is for short term and profit booking may trigger any time.
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On pivot levels in regard to DB realty share price, Sumeet Bagadia, Executive Director at Choice Broking said, "DB Realty share are bouncing from the lower levels. The realty stock has strong support placed at ₹85 apiece levels whereas it is facing immediate hurdle at ₹105. On breaching ₹105 hurdle, the stock may go up to ₹120 apiece levels in short term. So, the stock is in uptrend facing hurdles at ₹105 and ₹120. Those who have this stock in portfolio are advised to hold the stock maintaining trailing stop loss at ₹85."
DB Realty news
DB Realty had informed Indian stock market bourses about the settlement agreement for loan repayment citing, ""In compliance with Regulation 30 of SEBI, (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that the company and its wholly owned subsidiary company, Goregaon Hotel And Realty Private Limited have executed Settle Agreement with Reliance Commercial Finance Limited ("Lender") on 10th January 2023 for the loans given by the lender in the past."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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