HDIL "Buy stock" recommendation from Emkay Financial

Buy rating on Housing Development and Infrastructure (HDIL) stock with a target price in its December 17, 2008 financial research report.

CMP: 145
Emkay Global Financial Services has maintained its buy rating on Housing Development and Infrastructure (HDIL) with a target of Rs 170 in its December 17, 2008 research report. "With recent guidelines from RBI regarding restructuring of commercial real estate loans, we expect HDIL’s liquidity position to improve significantly. By March 2009, the company has only Rs 650 million of loans to be repaid. However, during FY10, the company has to repay Rs 12 billion. The management is of the opinion that large portion of this loan will now be restructured."

"We estimate HDIL’s NAV at Rs 425 per share. We are maintaining our BUY rating on the stock with revised target price of Rs 170 (60% discount to NAV). The stock is trading at 0.8x FY09 book value, a significant discount to industry peers who are trading at 1.1-1.4x FY09 book value," says Emkay Global Financial Services' research report.
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