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Buy DLF; target of Rs 236: HDFC Securities

HDFC Securities is bullish on DLF has recommended buy rating on the stock with a target price of Rs 236 in its research report dated November 13, 2017.

November 23, 2017 / 03:45 PM IST
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HDFC Securities's research report on DLF

DLF’s  2QFY18  PAT  came  in  81%  below  estimates,  on account of weak residential  revenue  recognition.  No green shoots yet on B/S recovery, as (1)  DLF has reopened sales only from 1-Nov-2017, post RERA compliance, (2) This  impacted pre-sales over last 5  months (sales  were closed since 1-May-2017),  (3)  Net cancellation of Rs 1.3bn, (3) Weak collections and a step-up  in construction of projects nearing completion have resulted in Rs 17bn increase in net debt vs FY17.

With  projects re-opening, pre-sales will pickup from 3QFY18E. Further, GIC has received CCI approvals for DCCDL deal and fund flow including that from DLF Promoter/QIP is expected in FY18E. As  the impact of demonet  has receded, we reduce the land bank discount of 10-15%. We maintain BUY with increased NAV- based TP of Rs 236/sh.

For all recommendations report, click here

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

Broker Research
first published: Nov 23, 2017 03:45 pm

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