Karvy Stock Broking Limited has suggested investors to ‘sell’ DLF stock with a target of Rs 325.

According to Karvy, interested investors can sell the stock around Rs 340 with a strict stop loss of Rs 350. 
 
Today (Oct 03), the stock opened weak at Rs 342, against its last closure at Rs 345.25 on the Bombay Stock Exchange (BSE) on Wednesday (Oct 01). Current EPS & P/E ratio stood at 15.91 and 21.42 respectively. The share price has seen a 52-week high of Rs 1225 and a low of Rs 329 on BSE. 

Karvy also suggested that if the stock fell below Rs 318, it may see more weakness. So the investors must sell DLF stock today. After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to earn good profits.

On September 9, real estate major DLF received approval letter from the stock market regulator SEBI for buy back plan of its shares worth Rs 11.10 billion from the open market at a price not less Rs 600 for each share. 

Post buy-back, the shareholding of the company’s promoters would go up from 88.16% to 89.32%.

DLF had come out with the plan to buy back shares on Jul. 02, 2008.

The company plans to spend 15% of its earnings on a continuing basis to buy extra land. 

DLF has formed a land replenishment fund, wherein 15% of the sale value of its realty growth is credited. 

DLF increased its land bank from 574 million sq.ft to 751 million sq.ft during the last fiscal (2007-08). 

DLF, during the last month, announced that the company may lift around Rs 100 billion for its growth plans via placements with institutions and qualified institutional buyers.