Prefer IDFC over DLF, says Sharma

VK Sharma, Head Private Broking & Wealth Management of HDFC Securities advised switching over to IDFC from DLF. He feels IDFC is a stronger play and also available at a cheaper price to book.

Sharma told CNBC-TV18, “DLF has been one of those stocks which put up a good show in the real estate sector as compared to the other smaller caps. It is also been timely selling some of its portions to reduce its debt equity ratio which was at 0.8:1 and after it sells other things it could even be 0.5:1 at the end of the year.”
He further said, “However, I am not so very sure about the appetite for this particular stock going forward. And given the levels at which Infrastructure Development Finance Company (IDFC) quotes today, if the choice is between putting in IDFC or DLF, I would request the investor to switch over to IDFC.”
“IDFC is a more stronger play and also available at a cheaper price to book at what it was quoting earlier whereas DLF is quoting at a premium to that. So, after the promoters dilute their stake it could happen at a discount to the price which could even infuse the losses further. So, without waiting for that one can switch it over,” Sharma added.