DLF declines on buzz a foreign brokerage maintains underperform rating

DLF lost 0.72% to Rs 152.60 at 11:42 IST on BSE on reports that a foreign brokerage maintained underperform rating on the stock citing slow housing market recovery in Gurgaon, negative cash-flow, elevated debt levels, and legal issues.

Meanwhile, the S&P BSE Sensex was down 97.79 points or 0.34% at 28,461.83.

On BSE, so far 5.16 lakh shares were traded in the counter as against average daily volume of 22.85 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 1.62% at the day's low of Rs 151.20 so far during the day. The stock rose as much as 0.19% at the day's high of Rs 154 so far during the day. The stock had hit a record high of Rs 242.80 on 9 June 2014. The stock had hit a record low of Rs 100 on 16 October 2014.

The stock had outperformed the market over the past one month till 1 December 2014, advancing 23.45% compared with Sensex's 2.49% rise. The scrip had, however, underperformed the market in past one quarter, sliding 14.61% as against Sensex's 6.3% rise.

The large-cap real estate firm has equity capital of Rs 356.39 crore. Face value per share is Rs 2.

The foreign brokeage reportedly said that a verdict against DLF in any of the ongoing legal issues (CCI, SEBI) can potentially dampen its brand equity and financial performance.

On consolidated basis, DLF's net profit rose 9% to Rs 109.06 crore on 2.9% growth in net sales to Rs 2013.15 crore in Q2 September 2014 over Q2 September 2013.

DLF's primary business is development of residential, commercial and retail properties.

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