Sell DLF, says Jigar Shah
Published on Thursday, November 5th, 2009 at 5:08 PMAuthor: stockalert (2027 Articles)
Sell DLF, says Jigar Shah, Senior Vice President of Kim Engineering Securities.
“DLF’s balance sheet is to a great extent repaired with about 0.7 times debt to equity. But what we find is that there is still an issue with the company’s cash flow where they need to, actually they have done the immediate repairing but they still need a lot of cash flow from new product launches. They need cash flow from sale of surplus assets and also from the pending receivables with the group company DLF Assets, which we think is slightly slower. The company has not been able to recover as fast as HDIL or Unitech in terms of the revenue etc and also because of their large exposure to the office units and retail. We think DLF is a bit lagging the peers. We think that the current price is still high about 20-25% higher than our realized NAV which we have worked out at Rs 312. So we would still be sell on DLF.”
Source : MoneyControl
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