New Delhi: Citi has downgraded DLF to "neutral" from "buy", and cut the target price to Rs 218 from Rs 266. DLF shares were last down 1.3 per cent to Rs 186.20.
Citi said DLF's share out-performance versus rivals over past year was unjustified given that 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 Rs 300-400 crore per quarter.
Citi said investors should wait for a pick-up in execution, sales and margins to become more constructive about India's biggest property stock.
For broader property sector, the investment bank said most challenges were priced in, and saw "bright spots": such as resilient prices in cities such as Mumbai, but said "stay selective."
Copyright Thomson Reuters 2012
Citi said DLF's share out-performance versus rivals over past year was unjustified given that 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 Rs 300-400 crore per quarter.
Citi said investors should wait for a pick-up in execution, sales and margins to become more constructive about India's biggest property stock.
For broader property sector, the investment bank said most challenges were priced in, and saw "bright spots": such as resilient prices in cities such as Mumbai, but said "stay selective."
Copyright Thomson Reuters 2012
