INVESTOR BRIEFING

<< HDIL LTD >>

SHARETIPSINFO.COM contact@sharetipsinfo.com

Sector: Construction
Sensex: 26560
CMP (Rs): 92
Target price (Rs): 110
52 Week h/l (Rs): 113.85/130.30
Month h/l (Rs): 101.40/80.40
Market cap ( cr): 3821.32
Avg volume 1584278
FV (Re): 10
P/E 13.61
EPS 6.70
BSE code: 532873
NSE code: HDIL
Prices as on 27 Aug, 2014
Shareholding pattern
June 14 (%)
Promoters 36.1
Institutions 41.6
Public & others 22.3
Performance rel. to sensex

(%) Opm
%
Npm
%
EPS
HDIL 79.74 24.7 1.45
NBCC 6.25 3.85 2.71
OMAXE 24.07 4.84 0.65
AHLUCONT 14.13 7.07 2.69

COMPANY OVERVI EW:
HDIL has established itself as one of Indias premier real estate
development companies, with significant operations in the Mumbai
Metropolitan Region. It is a public listed real estate company in
India with shares traded on the BSE & NSE Stock Exchanges. Its
business activity comprises of construction and development of
residential projects, commercial, retail and slum rehabilitation
projects. It is also engaged in construction of special economic
zone.

BUSI NESS OUTLOOK:
HDIL group has completed more than 100 million sq.ft of
construction in all verticals of real estate and has rehabilitated
around 30,000 families in last one decade. The Companys
residential projects range from apartment complexes to towers to
townships. The Companys commercial projects comprise office
spaces, as well as multiplex cinemas. In retail, the Company
focuses on building shopping malls. The Company also handles
slum rehabilitation projects under a Government scheme
administered by the Slum Rehabilitation Authority (SRA), offering
development rights in exchange for clearing and redeveloping slum
lands, while providing replacement housing for the displaced slum
dwellers.


BUSI NESS GROWTH UPGRADE:

High margin slum redevelopment projects: HDIL, the market
leader in slum rehabilitation, is well poised to cash in on the
immense opportunity in the slum rehabilitation scheme (SRS)
segment. The company has executed close to 10mn sqft of SRS
projects in the last 15 years and is more competitive than other
developers in the fray. A resolution of the Mumbai International
Airport (MIAL) project will act as a strong catalyst for HDIL, in
our view.
Slum redevelopment (SRA) projects do not involve upfront
investment in land compared to the conventional real estate
projects. The cost per sqft in slum redevelopment projects is around
`
3,000/sqft vs 5,0006,000/sqft (including land cost) on freehold
land due to the high property prices in mumbai.

INVESTOR BRIEFING
<< HDIL LTD >>
SHARETIPSINFO.COM contact@sharetipsinfo.com






Quarterly Performance highlights:
Housing Development Infrastructure Ltd (HDIL)s 1QFY2013 results were below our expectations on
account of no transferable development rights (TDR) sales due to low inventory and all the sales coming in
from the high margin floor space index (FSI) sale in Vasai- Virar. There were no FSI sales from the Guru
Ashish project during the quarter. The management expects 1.5-2mn sqft of FSI sales per quarter going
forward. The debt was reduced by 66cr during the quarter taking the debt to equity to 0.36x, down slightly
qoq. The management highlighted focus on debt reduction by monetization of existing land and no new land
purchase for the time being.
HIGHLIGHTS THE FACT:
Revenue decreased & EBI TDA up towards TDR sales: Revenues decreased 60% y0y and 68% qoq to Rs
201 cr on account of no TDR sales and all the sales coming in from the high margin FSI sale in Vasai-
Virar. The EBI TDA margin came in at 78.4%, up from 53% yoy owing to higher margin FSI sales.
Reducing the debt : - The company is genuinely making efforts to reduce the debt. Over the last three
quarters the consolidated debt has come down 25% and figure stands at Rs 2900 crore.
Raising fund for selling property: The company has already exited the entertainment business as
well as the multiplex business and looking at selling of its commercial property.

TECHNICALLY VIEW:
The stock is currently close above 50 and 100 days moving average that is good bullish signal on
daily base. RSI is present at 60.62 is sideways for the support come around 85. Hence the stock is
currently follow uptrend in the coming weeks as major support is found 85-84 levels. Entry
would be at 88-90 for the target would seen in the near term is 110.
Why retain BUY?

VALUATION & OUTLOOK:
The HDIL stock underperformed in the last cyclical
downturn primarily due to its overdependence on
TDR sales. We believe that HDIL could outperform
on the back of improving approval scenario in the
city and successful new launches which are expected
over the coming couple of weeks/ or months, which
would further improve its balance sheet.

CONCLUSION:
The stock is currently trading at 92. At 88/,
HDIL is trading at 0.3x and 0.28x on our
FY2013E and FY2014E book value
estimates, which seems cheap given the RoE
profile of the company (FY2013E- 9.0%,
FY2014E 9.5%). We maintain Buy on HDIL
at 88-90, with a target price of 110 in the
very short term period.