Goldman Sachs has rated share of DLF Ltd a ‘buy’ with a price target
of Rs. 264 following reports that the property developer is in advanced talks
with developers to sell its Lower Parel land.
“We believe a selling price of Rs. 2900 crore will imply a debt reduction of nearly Rs. 2700
crore and PBT of Rs. 1,300 crore.
Annual interest cost savings due to this transaction alone could amount to Rs. 350 crore,” the investment bank said in a note
to clients.
Goldman Sachs said a reduction of Rs. 1,000 core in average gross debt
leads to an EPS (earnings per – share) in of 1.2 % in FY 14E.
Share Review by Goldman Sachs
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