DLF - Result Update - Emkay

Reco: REDUCE
CMP: Rs 231
Target Price: Rs 220

Tough times continues

- Weak quarter of core operations, cash outflows towards land acquisition and high interest costs depleted the objective of non-core asset sale i.e debt reduction (down by just Rs 1.7bn)

- DLF adds land parcels in Chennai and Mumbai valued at Rs 35-40bn to the non-core assets list. Sale of Aman Resorts is delayed to Q1FY13 & monetization of wind power on cards

- DLF intends to launch 2msf of group housing in New Gurgaon by FY12 & 2.5msf in Golf links, Gurgaon. We believe these launches will give much abated boost to core operations

- We maintain our Reduce rating with TP of Rs 220. Cut our bottomline estimates by 22% / 15% for FY12E /13E. At TP, stock would trade at P/BV of 1.4x on FY13E.

Source : Equity Bulls

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