Buy DLF; target of Rs 315: PINC Research

94619 Investors following DLF. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy DLF; target of Rs 315: PINC Research

PINC Research is bullish on DLF and has recommended buy rating on the stock with a target of Rs 315 in its December 14, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy ILandFS Trans; target of Rs 224: PINC Research Buy BHEL; target Rs 400: Hedge Equities Buy Siyaram Silk Mills; target Rs 296: Firstcall Research ALSO READ See previous views by PINC Research See what other Experts & Brokerages are saying about DLF See messages about DLF DLF BSE | NSE 01/06/12 Are Mutual Funds betting on DLF?

PINC Research is bullish on DLF and has recommended buy rating on the stock with a target of Rs 315 in its December 14, 2011 research report.

"DLF is all set to reduce debt through sale of non -core assets and faster cash generation through sale of plotted development. As per the media reports, It is planning to sell its 100% hotel subsidiary (DLF Hotels and Hospitality) to Kolkata based Square Four Housing & Infrastructure for Rs5.5bn. We believe the deal has been strike out at the 1x of its book value."

"As per the media reports, DLF is selling its hotel subsidiary to Kolkata based Square Four Housing & Infrastructure for Rs5.5bn. Earlier, DLF had acquired the 26% stake held by Hilton International's for Rs1.2 bn and presently owns100% (74% in FY11)stake in DLF Hotels and Hospitality .It has signed a non-disclosure agreement with Square Four and expects to conclude the deal by third week of Jan'12.The net worth of DLF Hotel and Hospitality is Rs5.7bn (FY11) and we believe the deal works out at 0.9-1x of net worth.This deal is in line with the company'strategy to reduce debt. The company is actively looking for sale of its non core assets including Aman Resorts and have already finalised deal with IDFC for Noida IT park. We believe all the deals (please see Table-2) including the DLF Hotel & Hospitality will fetch DLF an amount of Rs35- 42bn and this will help the company to reduce its debt. (Presently D/E is -0.87x). Moreover, plotted sale will help generate faster cash and plays an important role in tackling the slowdown."

"We retain 'BUY' rating with a target price of Rs315. We believe that DLF is likely to reduce debt and accelerate cash flows through plot sale and non- core assets sale that will act positively for the stock," says PINC Research report.

Bodies Corporate holding more than 50% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment