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Swap Parsvnath Dev with Mahindra Lifespace: KRChoksey
KRChoksey Research has recommended to swap Parsvnath Developers with Mahindra Lifespace. Though the valuations are attractive, looking at the deteriorating fundamentals of the company, PDL is trading 91% down from its 52 weeks high due to which we feel that the risk reward ratio is adverse.
KRChoksey Research has recommended to swap Parsvnath Developers with Mahindra Lifespace, which has a very low D/E ratio of 0.3x and FY09 P/E of 3.7x. " Receivables have reached critical levels of Rs 872.5 crore, a rise of 71.6% y-o-y. This is a big concern as it blocks the much needed working capital and the chances of defaults could increase. Successful execution of current projects and early monetization of future projects would be key triggers. Slowing sales and deteriorating balance sheet are key concerns. Though the valuations are attractive, looking at the deteriorating fundamentals of the company, PDL is trading 91% down from its 52 weeks high due to which we feel that the risk reward ratio is adverse. We recommend the investors to swap their shares with Mahindra Lifespaces Ltd. which has a very low D/E ratio of 0.3x and FY09 P/E of 3.7x," says KRChoksey's research report.
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To read the full report click on the attachment......
