Tag Archives: Realty Stock

DLF announces retirement of T. C. Goyal, MD of the company

Posted on by Track2Realty

realty stock,indian realty news, indian real estate ,propety newsThe Board of Directors of DLF Ltd has placed on record appreciation on retirement of T.C. Goyal, Managing Director of the Company, from the services of the Company. He shall cease to be the Managing Director of the Company with effect from close of business hours on 31st March, 2015 upon completion of his term, as was approved by the shareholders of the Company at the extra-ordinary general meeting held on 4th April, 2013.

He has also resigned as Director of the Company with effect from the close of business hours on 31st March, 2015, which has been noted and accepted by the Board of Directors of the Company in its meeting held today.

Goyal has been an integral part of the DLF Family and at the forefront of the leadership team in DLF. He joined the Company in 1981 and was elevated to the position of Managing Director in 1998. During his career in DLF, Goyal has successfully steered the Company in various phases of its growth and expansion. His commitment and dedication are an inspiration to team members who were mentored under his leadership and guidance

He has kindly agreed to continue his association with the Company as “Chief Mentor” to help, advise and guide the leadership team.

Pursuant to this development, Mohit Gujral and Rajeev Talwar, Whole Time Directors, will be jointly and severally responsible for signing of all concerned statutory and regulatory filings that may be required to be made by the company from time to time.

K. P. Singh, Chairman, DLF Ltd. Said, “On behalf of DLF Family and members of the Board I take this opportunity to place on record our deep appreciation and gratitude to Mr. Goyal for his innumerable and significant achievements and contributions to the company”.

“My Career in DLF has been very rewarding and satisfying. I believe that DLF is a great company. It has reached great heights. I wish DLF the very best and am sure we will continue to grow and prosper”, Goyal said.

Source: Track2Realty Bureau

DLF shares fall 6% on ‘sell’ report

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news,Track2Media, Track2Realty, ravi sinha Shares of DLF, the largest real estate company, fell 6 per cent on Thursday, march 1, as Veritas, a Canadian investment research company, advised its clients to sell the company’s shares. The brokerage has said in a note that the company is worth Rs 100 per share and not Rs 213 at which it trades now.

In its observations the research note says since the IPO in May 2007, the company’s share price is down 57 per cent while the BSE Sensex rose 29 per cent. The research note says that the management has faltered at every step in executing its grandiose vision to be a conglomerate. The note cites examples of the company’s entry into hotels (the JV with Hilton has ended and Silverlink Resorts is up for sale), building mega townships (exited Bidadi in Karnataka and Dankuni in West Bengal) and build a mega convention centre in the Natioanl Capital Region or NCR only to exit in 2009.

The report highlights that DLF has no free cash flow and no credible plan to cut debt on its balance sheet. “A slowing real estate market in a high inflation environment and overexposure to Gurgaon – amongst India’s most speculative real estate markets will create tremendous pressure on the Company’s balance sheet,” the note says. DLF has already announced plans to sell non-core assets like land banks and stakes in joint ventures, according to previous reports.

In December quarter 2012 results presentation, DLF said that the company’s net debt stood at Rs 22,758 crore. Veritas says that the company could go to banks to restructure loans.

Veritas also expects the company to issue equity in a secondary offering thereby diluting shareholders, and killing the current dividend are the only reasonable options for the Company.

The report says that the company inflated sales and profit numbers of DLF Assets, a subsidiary that was merged with DLF. “We believe that via its dealings with DAL, from FY07 to FY11, the Company inflated sales by at least Rs 11,236 crore and profit before tax (“PBT”) by Rs 7,233 crore,” the report says.

Realty Index fell 16% in a week after gaining 50% in 2012

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real EstateAfter a sharp recovery in the first one-and-a-half months of the calendar year — the Bombay Stock Exchange (BSE) Realty Index gained over 50 per cent, real estate stocks seem to have lost steam. The index, which tracks property stocks, has lost 16 per cent since last week, while the broad-based BSE Sensex has lost five per cent.

“These are high Ebitda (earnings before interest, taxes, depreciation, and amortization) stocks. There had been a sharp rally in real estate stocks…Hence, sell-off has been sharper. I am not surprised by this correction,” said Rikesh Parikh, vice-president, equity strategies at Motilal Oswal Securities.

HDIL and DB Realty, which had gained 124 and 92 per cent, respectively, till February 16, have lost 24 per cent each since last week. Sharan Lillaney, equity analyst at Angel Broking, said, “Fundamentally, no change has taken place and developers are still seeing fund crunch.”

According to a recent report by Kotak Institutional Equities, net debt of large developers such as DLF remained flat in the December quarter, though these companies sold non-core land parcels to reduce debt and most cash flows went towards interest payment.

Coupled with high interest rates, uncertain economic conditions and high property prices, absorption of homes more than halved in cities such as Mumbai and the national capital region last year.

The BSE Realty Index lost 28 per cent in 2011. “There is no reason for these stocks to rise. The cost of borrowing for developers has gone up, launches have reduced and the sales velocity has come down sharply. By the looks of it, I don’t think things are going to revive any time soon,” said Amit Goenka, national director, capital transactions at Knight Frank, a global property consultant. In the coming days, the Reserve Bank of India (RBI)’s policy action and budget announcements could have a major impact on the movement of realty stocks, analysts say.

“Though most expectations were factored in the last rally, any positive announcement in the Budget and any surprise rate cut by the RBI can have a positive impact on realty stocks…However, we do not believe any rate cut will be there in the next RBI policy,” Lillaney said. The apex bank left key policy rates unchanged in the last two policy announcements after increasing interest rates 13 times to tame inflation hovering above nine per cent. It said rates had peaked and “further actions were likely to reverse cycle”. Ajay Parmar, co-head, investment banking, Emkay Global, said, “Broadly, it’ll depend on rate cuts, which will reduce easy monthly instalments of home loan borrowers and benefit real estate companies.”