Emkay puts 'hold' on DLF; target Rs 868
Emkay Share and Stock Brokers has recommended ‘hold’ on DLF for a target price of Rs 868.
By INDIATIMES NEWS NETWORK |
MUMBAI: Emkay Share and Stock Brokers has recommended ‘hold’ on DLF for a target price of Rs 868.
DLF has entered into 50:50 joint venture with Adrian Zech, founder & chairman of Aman Resorts, to acquire controlling interest in Aman Resorts. The deal has been valued at an enterprise value of $400 million, including debt of $150 million
Aman Resorts presently operates 22 luxury hotels in 12 countries. It is expected to report revenues of $120 million and an EBITDA of $26 million in 2007. Management expects margins to remain at current level and expects 20 per cent annual growth.
Emkay believes DLF has entered into the agreement at very attractive valuations with EV/EBITDA at 15.6 times, EV/Revenue of 3.3 times 2007 estimate and EV/room at $357,000 (Rs 14 million).
DLF has entered into 50:50 joint venture with Adrian Zech, founder & chairman of Aman Resorts, to acquire controlling interest in Aman Resorts. The deal has been valued at an enterprise value of $400 million, including debt of $150 million
Aman Resorts presently operates 22 luxury hotels in 12 countries. It is expected to report revenues of $120 million and an EBITDA of $26 million in 2007. Management expects margins to remain at current level and expects 20 per cent annual growth.
Emkay believes DLF has entered into the agreement at very attractive valuations with EV/EBITDA at 15.6 times, EV/Revenue of 3.3 times 2007 estimate and EV/room at $357,000 (Rs 14 million).
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