DLF Ltd : Target price: Rs 265

India's largest real estate company DLF Ltd  is set to witness improvement in operations in 2012-13, with strong visibility of launches, robust demand & execution ramp-up shortening cash conversion cycle.

Analysts expect positive operational surplus (post interest) from 2012-13, which would free up divestment proceeds for reducing financial leverage.

Negotiations for 3 major assets - wind mills, Aman Resorts & Mumbai NTC mill land (expected value: Rs. 5,000 crore) are expected to reach a conclusive stage in the first half of  2012-13.

Analysts expect improving core operations to drive stock upside. The stock currently trades at 1.3 times FY13 estimated book value - 35% discount to its median of 2 times.
Analysts value DLF Ltd ’s land bank at Rs. 295 share. So, buy.

Review by MOSL

 
Motilal Oswal Securities Limited.
4th Floor, Hoechst House, Nariman Point, Mumbai - 400 021.
Board : + 91 22 39825550 / 5500
Fax : + 91 – 022 - 22883821 / 22885038.
Emaill  :  inquire@motilaloswal.com
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