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DLF gains on hopes of earnings recovery, lower debt

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Reuters Delhi, India
Last Updated : Feb 18 2013 | 2:30 PM IST

Reuters Market Eye - Shares in DLF Ltd gain 5.2 percent, recovering from four sessions of falls.

Rebound in shares comes after DLF vice chairman Rajiv Singh indicates earnings would improve and says net debt would fall, according to analysts who attended the company's first ever post-results analyst meeting on Friday.

CLSA upgrades the stock to "outperform" from "sell", and raises target price to 280 rupees from 180 rupees, quoting Singh as painting "an optimistic outlook" for earnings.

Singh guided for EBITDA potential of 82.5 billion rupees over the next two to three years and said DLF would halve net debt by half over the same period, CLSA says.

DLF said on Thursday October-December consolidated net profit rose a slower-than-expected 10.5 percent to 2.86 billion rupees.

(Reporting by Manoj Dharra)

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First Published: Feb 18 2013 | 2:15 PM IST

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