Web Sify
Follow us on
Mail
Print

Citi cuts DLF; sees upside in Indian property

Source : REUTERS
Last Updated: Wed, Jun 20, 2012 07:32 hrs
A man rides pass an advertisement of Indian property developer DLF Ltd. in Gurgaon

Citi downgrades DLF to "neutral" from "buy", cuts target price to 218 rupees from 266 rupees. DLF shares last down 1.3 percent to 186.20 rupees.

Citi says DLF's share out-performance versus rivals over past year unjustified given non-core asset sales over next 5-6 months "will likely only help at the margin" and not cut debt "materially" due to continued estimated capex of around 3-4 billion rupees per quarter.

Citi adds wait for a pick-up in execution, sales and margins to become more constructive about India's biggest property stock.

For broader property sector, investment bank says most challenges priced in, sees "bright spots": such as resilient prices in cities such as Mumbai, but says "stay selective."

Top picks in sector are Phoenix Mills and Prestige Estates




More from Sify:
blog comments powered by Disqus
most popular on facebook
talking point on sify finance