DLF stock rated HOLD by Edelweiss as operational issues cast shadow on Q1
Posted on 19th August 2017 |
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| DLF’s Q1FY18 residential new sales were severely impacted as beginning May 2017 it had halted sales across projects citing RERA compliance. While sales should pick up in coming quarters, we expect slow pace until demand improves in Gurgaon market and/or DLF launches new inventory. We envisage meaningful rental uptick only post FY19 when ongoing rental assets become operational. We, hence, perceive limited earnings scale-up visibility. Deleveraging hinges on GIC deal valuation. Maintain Hold. Q1FY18 miss; RERA uncertainty impacts new sales: Q1FY18 revenue of Rs 20.5 bn was driven by POCM-based revenue recognition in ongoing projects. Ebitda margin was healthy at 44 %. Net profit came at Rs 1.1 bn versus our estimate of Rs 1.4 bn. Net debt increased by Rs 8 bn q-o-q to Rs 259 bn driven by negative operating cash flows. Challenges ahead: DLF’s residential sales have seen a structural slowdown over the past 4 years due to tepid demand in its mainstay Gurgaon market and limited new launches. We expect Gurgaon market revival to take some time and DLF’s commentary indicates little new launches planned in the near future. Focus on completing ongoing residential projects coupled with slow new sales and capex towards ongoing rental assets should result in operating cash deficit of Rs 7.5 bn/quarter for the next 2-3 quarters and stretch b/s further. GIC deal should de-leverage b/s meaningfully though will lead to loss of 40% DCCDL rentals. Outlook and valuations: We expect muted operations for DLF in coming quarters. Valuation of promoter stake sale in rental assets, improvement in Gurgaon market and new launches are key stock catalysts. Earnings-based valuations appear rich versus peers—30x/27x FY18e/FY19e EPS (ex-CCPS deal impact). |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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