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