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Motilal Oswal neutral on Unitech

Posted on: July 1st, 2009 and is filed under Brokerage Recommendations.

Motilal Oswal has maintained its neutral rating on Unitech, in its report dated June 29, 2009.

“We have upgraded our NAV estimate to Rs 83/share from Rs 66/share, to account for (i) accelerated launch of projects, ii) reduction of WACC and cap rates, and (ii) 5% CAGR in real estate prices vs zero increase earlier. The stock trades at 1.9x FY11E adjusted BV of Rs 44/sh and at 1x its FY11E NAV of Rs 83/share. While the macro outlook has turned positive for Unitech, we believe the stock is fairly valued. Maintain Neutral,” says Motilal Oswal’s report.

source: Moneycontrol

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