Macquarie maintains Outperform on HDIL

MUMBAI: Macquarie Research has maintained its ‘Outperform’ rating on HDIL after the company announced its third quarter results. It expects the stock to touch target price of Rs 441 in next one year.

“HDIL reported net sales of Rs 4,089 million, up 15.6% QoQ. PAT increased by 10.9% QoQ and was around 5% above consensus estimates. Growth is primarily driven by pick-up in Transferable Development Rights (TDR) prices.

TDR market which completely dried up during early 2009 is seeing consistent revival. TDR prices have increased to around Rs 2,500 from as low as Rs 950 in March 2009. During the quarter, the company sold around 1.5m sqf of TDR at an average rate of ~Rs2500, up 10% QoQ. We have increased our TDR price forecast for FY11E and FY12E to Rs 2,000 and Rs 2,200 from Rs 1,500 and Rs 1,600, respectively.

We increase our target price to Rs 441 from Rs 344 on account of encouraging sales volume and prices data combined with strong pipeline of projects,” the report said.