Buy DLF

Buy DLFKarvy Stock Broking Limited has maintained ‘Buy’ rating on DLF stock to achieve a target of Rs 165 within 1-2 days.

According to Karvy, day traders can purchase the stock between Rs 155-157 with a stop loss of Rs 150. If the stock market remains on positive track, the next target for the stock will be above Rs 168.

Shares of the company, on Wednesday (Feb 18), closed at Rs 158.70 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 8796462. Current EPS & P/E ratio stood at 12.67 and 12.77 respectively. The share price has seen a 52-week high of Rs 899 and a low of Rs 124.15 on BSE.

On Feb 18, the stock performed well and touched an intraday high of Rs 162.80 and intraday low of Rs 142.10. In the earlier session (Feb 17), the shares declined 5.19% (Rs 8.1) at Rs 147.85.

A group of private equity funds, consisting of UAE’s top financial institution Taib Bank, the Blackstone group and JP Morgan, are learnt to be in talks with the founders of DLF group to buy a majority stake in associate company DLF Assets.

If the transaction gets finalized, DLF Assets would receive around $400-450 million.

On the same day (Feb 18), DLF slashed the price of its residential project in Bangalore by 24%, the revised price of the project Westend Heights in New Town, Bangalore is below Rs 2,100 per sq ft as compared to the October 2008 launch price of Rs 2,775.

DLF, on Feb 12, postponed two of its major mid-income housing projects owing to acute liquidity crunch and poor buyer reactions.

This move comes after the company stalled at least a quarter of its commercial projects. The company has stopped work at DLF New Town Heights in Gurgaon Sector 90 and Express Greens in sector M1 in Manesar, both in Haryana. The two projects were launched in January and August 2008, respectively.
 
On Feb 11, the company unveiled DLF InfoPark in Bhubaneswar. Covering more than 54 acres, the InfoPark offers 25 acres of land for IT SEZ workspace. These 25 acres of land will be DLF’s initial IT SEZ project in Odisha and will be followed by projects in other cities in the state.

DLF Ltd, on Feb 10, has secured long-term loans of Rs 20 billion from three public banks and a financial institution.

DLF has tied up loans of about Rs 7 billion from PNB and Rs 3 billion from SBI.

Moreover, the company also secured funding of around Rs 7.5 billion from LIC and Rs 2.5 billion from BoI.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes HDIL, Akruti City and India Bulls Real.

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