Indiabulls Securities recommends to buy Unitech
Indiabulls Securities Research has recommended a buy rating on Unitech in its July 01 report. Unitech Limited operates as a real estate development company in India and internationally. Its real estate projects include residential complexes, golf course communities, integrated townships, amusement parks, commercial offices, IT parks, and
retail malls
Indiabulls report says, Unitechs stock is currently trading at a 19.8 percent discount to our Net Asset Value (NAV) of Rs.103. We believe that the stock has a long-term upside potential, primarily due to the increasing residential sales volume coupled with the company’s comfortable liquidity position. Hence, we recommend buy rating on Unitech.
The company performed very badly in Q4′09 due to stringent market condition and marginal sales booked during the period. Net sales of the company went down 66.8 percent year over year (YOY) and 21.2 percent quarter to quarter (QOQ) to Rs.385.6 crore. In the financial year ended March 31, 2009, the net sales of the company were Rs.2889.74 crore against Rs.4140.4 crore in previous fiscal.
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