Buy Unitech, target of Rs 110: KRChoksey
KRChoksey has recommended a buy rating on Unitech, with price target of Rs 110, in its report dated June 29, 2009.
“The successful QIP’s has brought positive triggers in the stock. We expect Unitech would be able to launch 35 million sq ft in next 2 years. The company plans to launch 40 projects at aggressive price points on which they have received a good response. We expect Unitech to reduce its debt by 35% to Rs 5,070 crore by the end of FY10 from the existing debt of Rs 7,800 crore., which will bring down its D/E from 1.6X to 0.5x. Based on our funding analysis, we believe that the funds raised from QIPs and other initiatives (asset sale, Telenor deal, warrants to be issued to promoters, etc) would be sufficient to fund its planned projects. We thus belive that the funding woes for the company are more or less over in short to mid term. At CMP of Rs.84 we maintain our ‘BUY’ recommendation on the stock with a target price of Rs 110, which gives it an upside potential of 29.4%. At the CMP of Rs 84, the stock is trading at 20.3x FY10E earnings of Rs 4.2,” says KRChoksey’s report.
source: Moneycontrol
Tags: brokerage tips and calls, buy or sell unitech, hold unitech, NSE Tips, stock market india tips
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