DLF is one of the largest real estate developer in India. In the past 4 years, DLF is struggling with their mounting debt. Company initiated non core business sell out 2 years back to pare down the debt but the interstitial cost per quarter is very high and it is eating out any bulk sell amount to service debt.
The slow down the Northern India property market also depressed the sentiment of investors in DLF. The company equity price even touched 100 in 2015 and currently trading at 154 INR.
As DLF made their intention clear to reduce their debt and initiated the process of selling the part of their rental business by offering 40% to potential buyers and then reinvesting it back to company.
It will help the company to reduce their debt and more flexibility on profitability. The reduction of interest cost will positive profit assertive.
It is recommended that investor may go for delivery based medium term investment and accumulate shares during market selloff days.
Please consult your financial advisor before investing
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