The Company has posted a net profit of Rs 59.551 million for the quarter ended June 30, 2009 as compared to Rs 68.015 million for the quarter ended June 30, 2008. Total Income has increased from Rs 334.601 million for the quarter ended June 30, 2008 to Rs 347.880 million for the quarter ended June 30, 2009.
Target price: Rs 170
ICICI Securities has initiated coverage on Indiabulls Real Estate with a ‘buy’ rating, with a price target of Rs 170 on grounds the company is well capitalised to ride the current downturn in the realty sector. “IBREL has sold stake in its company and in properties to raise Rs 5,300 crore in the past two years.
Its balance sheet is robust (debt Rs 205 crore, cash Rs 3,400 crore) to tied through the current downturn and capitalise on opportunities,” the broking company said in a recent report. “We estimate FY09E NAV (net asset value) to be Rs 8,800 crore, or Rs 341/share (target price Rs 170/share assuming 50% dis-count to NAV). Given the execution risks, we expect the stock to trade on its balance sheet strength (cash per share Rs 122, FY08 BV/share Rs 171) rather than the potential of the project pipeline,” it added. - ET
