DLF - Operating consolidation hinges on four-pronged strategy - Motilal Oswal

Balance sheet yet to gather strength owing to weak operations

- Weak operating cash generations undermined its ability to improve balance sheet strength through asset divestment in FY12.

- DLF's annual report highlights company's priorities on consolidation of core operations and achieving balance sheet stability.

- The four pronged strategy should augment core operations in FY13, along with long term value unlocking. The immediate trigger hinges on large ticket divestments.

- The stock trades at 1.3x FY14E BV and 30% discount to NAV. Buy with a TP of INR255.

Source : Equity Bulls

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