Motilal Oswal neutral on Unitech

Published on Thu, Aug 07 at 15:17 , Updated at Thu, Aug 07 at 15:22 Source : moneycontrol.com Motilal Oswal has recommended a Neutral rating on Unitech in its July 30, 2008 research report. Unitech’s 1QFY09 revenues were up 19.2% YoY to Rs10.3 billion. Reported PAT stood at Rs4.2b v/s our est of Rs4 billion. In July 2008, Lehman Brothers acquired 50% stake in phase I (1msf) of Unitech’s SRA project in Mumbai for Rs7.4b. This project is being developed by Unitech’s 50:50 JV Shivalik Ventures,which is also in the advanced stage of progress in several other projects. This could increase Unitech’s landbank in Mumbai to 50 msf. We have lowered our FY10 NAV estimate for Unitech by 19% from Rs247 per share to Rs 200 per share. We expect the stock to trade at discount to its NAV mainly owing to (1) high leverage and (2) unrelated... [read full story]