DLF Non-Core becomes Core REDUCE :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

DLF

Non-Core becomes Core

REDUCE

CMP: Rs 228                                       Target Price: Rs 220

---

n     With Core side of the business lagging, Non-Core Asset sale become the core focus to generate cash and reduce debt which increased by Rs 10bn to Rs 225bn at net level

n     Operating Cashflows plummets from Rs 8.37bn to Rs 2.76bn on QoQ; company is not able to meet interest cost outflow (Rs 6.9bn in Q2FY12) from core business cash inflow

n     Sales bookings of 1.28 msf in Q2FY12 with no new launches in the quarter. We continue to believe that the company will fail to meet its sales booking target of 10-12 msf in FY12

n     We maintain our Reduce rating with TP of Rs 220. We also maintain our sales booking target of 7.4msf for FY12E for total value of Rs 32.6bn