HDIL can move to Rs 120, says SP Tulsian

Housing Development and Infrastructure (HDIL) can move to Rs 120, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I will be taking a positive call on HDIL because if you see their Q1 results, there has not been a single square feet sell of the transferable development rights (TDR), whatever volume they have achieved of about Rs 200 crore has come purely from the sell of FSI."

He further added, "Now if you hear them, they are likely to complete four of their projects which may come in the last quarter of the FY13 and since they follow the project completion method, we will be seeing the improvement to start happening on account of the project completion from Q4. From Q3, they will definitely be going ahead with the sell of the TDR also because of this development control regulations (DCR) having came in last quarter, the activity will be picking up on the development front post monsoon and where there will be the demand for the new TDR, which they will start selling."

"They are expecting the generation of 2 million sq ft of TDR in this financial year as well and they have given a target, though they have gone for a reduction of about Rs 50-100 crore of the debt in this quarter but they have indicated that the debt, which is now at about Rs 4,000 crore will be brought down to about Rs 3,000 crore or so."

"The Mumbai real estate properties are still enjoying a good demand in terms of the under-construction, in terms of the TDR, in terms of the floor space index (FSI) or in terms of the plot sell because the case in point is DLF where they have been able to sell to Lodha inspite of the lower offtake and all we are talking about."

"So they are not going out from their core activities of the development like we have seen in case of DLF, they will be realizing the money of close to Rs 1,000 crore from sell of TDR and FSI which I see positive and the completion of the projects, some of the projects in this financial year will also help. So I am taking a positive call on the HDIL and expect that price can move to about maybe Rs 120 in next four-six months also."