Gopi Suvanam of Investworks told CNBC-TV18, "DLF has a tremendous amount of unsold inventory of 10-12 million square feet. They are financing it at upwards of 18 percent interest rates. Real estate is growing at a rate of 10 percent odd which means that they are continuously destroying shareholder value."
"At this moment I think it is a highly over valued stock. The book value of DLF is about Rs 85 odd. So, I think the stock should come somewhere around 1.2 times the book value which would lead us to Rs 100. So, even if we don't reach Rs 100, I think Rs 120 level is sort of a value where I can envisage DLF to be," he said. On September 26, DLF closed at Rs 135.55, down Rs 1.15, or 0.84 percent. The share touched its 52-week high Rs 289.20 and 52-week low Rs 120.25 on 12 March, 2013 and 06 August, 2013, respectively. Also Read: Will sell 15000-17000 flats over next 2-3 years: DLFDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
