Friday, 7 November 2008

Buy HDIL; target Rs 170: Emkay Global

Emkay Global Financial Services has recommended a buy rating on Housing Development and Infrastructures (HDIL), with price target of Rs 170, in its reports dated November 4, 2008. "Housing Development and Infrastructures (HDIL) reported its Q2FY09 results which were below expectation. Revenue for the quarter stood at Rs 4.7 billion as compared to Rs 4.6 billion during Q2FY08. Net profit registered growth of 15.8% to Rs 2.6 billion, primarily due to lower effective tax rate of 5.5%."

"We are downgrading our NAV estimates to take into a) higher cost of equity b) delays in certain projects c) further moderation of TDR prices. We estimate HDIL’s NAV at Rs 425 per share (as compared to our earlier estimate of Rs 873 per share). We are maintaining our BUY rating on the stock with revised target price of Rs 170 (60% discount to NAV)," says Emkay Global Financial Services' report.

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Source: Moneycontrol

Posted by Harsh at 07:34

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