Things appear bleak for DLF at present: Ambareesh Baliga, Market Experta

In a chat with ET Now, Ambareesh Baliga, Market Expert, shares his views on DLF.

ET Now: Your views on DLF?

Ambareesh Baliga: Bad days for DLF, clearly. Following the Supreme Court rap, now the rap from SEBI. This has clearly closed all the doors for raising funds for them to repair their balance sheet.

The only way out for them would be to sell their assets. Generally in such a case, companies are pushed to a corner. It is similar to what is happening with Sahara now.

This is quite negative in the sense that they may have to sell their assets at lower than what they earlier thought they could. The only saviour for them could be possibly a stay against the SEBI order. Other than that, I do not see any way out for them for next three years.

ET Now: If they do not get that, do they have the assets to help manage their stretched balance sheets?

Ambareesh Baliga: They have the assets; the question is at what price do they sell it. If their target was 100, now they may have to end up selling that at 60. That is the big question.

ET Now: Do you see DLF as a two-digit stock?

Ambareesh Baliga: It is possible in a market like this. When the sentiment is badly broken, anything can happen. We have Bhushan Steel coming from 500 to below 100 before it bounced back. So, anything is possible.