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DLF shares to gain on improving outlook - Macquarie

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Reuters
Last Updated : Jun 03 2013 | 3:27 PM IST

Reuters Market Eye - DLF Ltd has guided for pre-sales of 8-10 million square feet worth 60 billion rupees in fiscal 2014, up from 38 billion rupees in fiscal 2013, according to Macquarie Capital Securities India, which cited an analyst conference call.

DLF has also guided for net debt of 170 billion rupees by the end of fiscal 2014, down 20 percent from fiscal 2013 levels, Macquarie said in a note to clients on Monday.

"DLF is at an inflection point. We think as the company delivers on debt reduction and improvement in business operations, the stock will move up," Macquarie said.

The investment bank also notes the upcoming completion of a deal to sell its Amaresorts luxury hotel chain, a pick-up in launch and sales momentum are key catalysts for the stock.

Macquarie maintains its "outperform" rating on the stock, albeit with a reduced target price of 275 rupees from 305 rupees earlier.

DLF shares were down 1.5 percent at 191.75 rupees at 2:42 p.m.

(Reporting by Abhishek Vishnoi)

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First Published: Jun 03 2013 | 3:09 PM IST

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