Better to play real estate through related sectors: KR Senthilnathan, NAFA

NAFA Asset Managers prefer holding construction material stocks, such as Greenpanel, rather than directly investing in the real estate industry, says KR Senthilnathan, director of investments. As the rate hikes have somewhat finished, the falling rates would increase market potential for these companies, with banks and other real estate-related stocks to perform well during the rate down cycle. The home improvement sector is expected to grow by 13%-15% and produce stocks like Green Panel with reasonable cash flow yield of 8.5%.