DLF Ltd - Status quo, Maintain Hold - Emkay

Reco: HOLD
CMP: Rs 207
Target Price: Rs 220

- Another divestment of Rs 3.85bn doesn't have any impact on debt reduction. In last 5 quarters DLF divested Rs 21.4bn worth of assets but Gross debt increased by Rs 11.5bn.

- In Q1FY13, DLF had cash deficit of ~Rs 4.5 considering the capex & interest cost outflow. Divestment of Rs 50bn of assets would save max. Rs 2.0bn of interest cost quarterly.

- DLF sold 1.3msf in Q1FY13 for ~Rs 6bn in Q1FY3. Target of Rs 60-65bn of sale booking in FY13 looks unachievable despite of launch of ~3msf in Gurgaon Phase V in H2FY13.

- Maintain Hold rating and TP of Rs 220. Await significant improvement in core business performance or divestment of Aman Resorts for any further re-rating.

Source : Equity Bulls

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