DLF recoups losses; stock up 7%

On Tuesday, shares of real estate major DLF had tanked nearly 30% post Sebi order.

DLF is trading 7% higher at Rs 112, bouncing back 12% from its record low of Rs 100 touched during intra-day deal on BSE in early morning deals, on back of heavy volumes.

The stock opened at Rs 100 and hit a high of Rs 116 on BSE. At 1115 hours, a combined 43.6 million shares representing nearly 10% of total free-float of equity of DLF changed hands on the counter on BSE and NSE.

On Tuesday, shares of real estate major DLF recorded the sharpest single day fall since the company's listing on the bourses on July 2007, after the market regulator,  Securities and Exchange Board of India (Sebi), barred real estate major and six of its top executives, including Chairman K P Singh, from accessing the capital market for three years. The stock tanked 28.5% to Rs 105 from Rs 147 on October 13, 2014.

On Monday after market hours, Sebi barred DLF, including its chairman, K P Singh, from the markets for failure to disclose sufficient information to investors during its Initial Public Offer (IPO) in 2007 to raise Rs 9,187 crore.

Analyst at Barclays believes this along with other recent adverse regulatory rulings and weak demand environment does not augur well for DLF.

While valuations appear cheap (0.9x FY16E book), we maintain EW rating and reduce our price target to Rs 159 due to macro and regulatory headwinds, analyst said in a recent report.