India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
HDIL sells plot in Andheri (East), Mumbai for `800cr
In one of the largest land transactions in suburban Mumbai in recent times, HDIL sold the
seven-acre Popular Car Bazar plot in Andheri (East) for approx `800cr to the Kanakia
Group. The deal has been struck at approx `26,230/sq ft. which is higher than a recent
deal by Sheth Developers where they had bought an 18-acre plot from Borosil Glass
Works in the near-by Marol area for `875cr (`11,160/sq. ft.). Notably, HDIL had bought
the said plot from the Thakur family two years ago for `400cr.
HDIL has net debt of 0.32x, with an unpaid land cost of `300cr to be cleared over the next
two years and majority of the repayment obligation starting from FY2012. We believe the
land sale proceeds will further enable HDIL to finance the second phase of the airport
project.
HDIL managed to completely sell-out Phase I of the Paradise City project (Palghar) within a
week. Phase II of the project launched in December 2010 was also met with good
response. The company has been able to |pre-sell 75% of its residential projects (7mn sq.
ft.) launched since FY2009, thereby providing `5,000cr of revenue visibility over FY2010–
12E. In FY2011-12, HDIL plans to launch new projects of 26mn sq. ft., largely in Mumbai.
At the CMP of `184, the stock is trading at a 54% discount to our one-year forward NAV of
`402. Hence, we maintain a Buy on the stock, with a Target Price of `302 (25% discount to
our NAV).
No comments:
Post a Comment