Online Business
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Will it last?
75 per share), any delay in execution of it’s residential, SEZs (not yet notified) or power projects could be costly. Analysts peg the sum of parts valuations (power and real estate) between Rs 335-355 indicating that returns of about 21 per cent from the current prices. VALUATIONS FY10E Market NAV/ Share Premium/ (discount) Sales Operating profit Net profit FY10 P/E FY11 P/E DLF 454.70 546 -16.72 7,390 3,890 2,390 32.7 24.0 Unitech 98.65 88 12.10 3,380 1,710 1,080 21.9 23.5 HDIL 376.40 282 33.48 1,321 532 365 35.5 20.9 IBREL 276.30 220 25.59 389 83 139 78.9 32.5 Source: Analyst estimates Unitech: Unitech has had positive newsflow recently with the government approving Telenor’s (a partner in telecom venture) proposal to hike the stake in Unitech Wireless to 74 per cent. The company has had a good first seven months (March to September) going by the response to its launches aggregating to 21.30 mnsqft of residential and commercial property. The company has managed to book sales Rs 4,000 crore from the sale of 10.11 mnsqft. It plans to launch about 30 mnsqft and achieve about 20 mnsqft of pre-sales in this fiscal, says an analyst. Of the past projects which total an area of 22.31 mnsqft, the company has delivered about a fifth and expects to complete delivery of the rest by March 2011. Improved cash flow from the sale of hotels and plots (Rs 940 crore), two QIPs (Rs 4,400 crore) and Rs 386 crore from Unitech Wireless have helped bring down debt levels to about 0.6 times from 1.7 times last year. Like DLF, the company is eyeing the affordable housing segment and has launched projects under the Unihomes brand catering to budgets between Rs 10-30 lakh range. After the sale of about 900 units at its Unihomes project in Noida, the company is planning to launch more apartments under this brand. Analysts estimate that the company is likely to have a strong second quarter on the back of higher project and asset sales. Considering the recent spurt in sales at its new launches and balance sheet deleveraging is already factored into the current price and it is trading at a premium to its NAV, expect little upside to flow through in the current fiscal.Pages: 1 [2]