"Unitech's assets have long-term value and valuations are cheap. The company will also benefit from a possible sale of the IT SEZ assets in Gurgaon," Citi report said.
Unitech's consolidated total income increased 40.4 percent on yearly basis (down 32.5 percent Q-o-Q) to Rs 572.6 crore during April-June quarter.
Analysts expect tepid Q-o-Q performance in first quarter of Unitech as the effects of execution ramp-up will only show-up from the October-March period of FY14 onwards. Even sales volume and value will remain flattish Q-o-Q while EBITDA margins may be muted Q-o-Q due to impact of low margin older projects.