Unitech

[buy2gain]

ok, lets talk so pure T.A here. The fist target for this could be 300 and if it can't hold 300 ((A medium term call), it may all the way go to 200 (may take some months before it can touch this.

My Stop Loss for this will be 300.

Satya

....and I also think if it can't hold 200 then 150 and if it can't hold 150 then 100 and if it can't hold 100 (a long term call), it may all the way go to 50 (will take at least 6 months).

My plan would be not to buy in uncertainties.

 

[jnj333]

....and I also think if it can't hold 200 then 150 and if it can't hold 150 then 100 and if it can't hold 100 (a long term call), it may all the way go to 50 (will take at least 6 months).

My plan would be not to buy in uncertainties.

Hey, you guys have not mentioned that it may also become a penny stock in few months or the shares will be available for free. Cheers to that. Joke of the year.

CHECK THIS OUT-


SSKI India report on Unitech:

"Unitech, India's largest listed real estate company, is expected to be a significant beneficiary of the ~16bn sq. ft of residential, commercial and retail development expected to be undertaken in the Indian real estate market by 2010. Unitech has strong brand equity as also pan India presence with focus on residential development - the most profitable real estate segment. Moreover, the company's focus on outright selling of non-residential properties improves capital utilisation and enables it to grow its land bank rapidly. Our NAV-based fair value of Unitech's land bank of 14,211 acres and SEZs works out to Rs 621 per share. We initiate coverage on the stock with an Outperformer rating."

Indian real estate - a metamorphosis underway:

"A progressive regulatory framework and increasing importance of urban development are transforming the real estate landscape of India. We see sustained growth in all real estate segments going forward as robust economic growth and favourable demographics drive construction of ~16bn sq. ft by 2010E. Further, robust IRRs in the business throw up a big opportunity for real estate developers over the next 4-5 years."

Unitech, a pan India developer - the key beneficiary:

"Unitech has a strong track record of quality orientation and timely completion of projects in all segments of real estate development. Unitech's two-pronged strategy of focusing on residential development (the most profitable segment) and outright selling of developed non-residential properties (the most capital intensive segment) would enable it to effectively utilise capital for rapidly growing its land bank."

NAV estimated at Rs 621 per share - Outperformer:

"Unitech has a pan India land bank of 14,211 acres along with 3 multi product SEZ's. On the back of the huge land bank, we expect Unitech to sell ~215m sq. ft of space over FY07-10, driving a 23x rise in revenues to Rs 285 billion and 113x increase in profits to Rs 112 billion over FY06-10E. We have valued Unitech by discounting the free cash flows from all its residential, commercial, retail, hotel and SEZ projects, which works out to Rs 621 per share."


WANT MORE DATA, JUST LET ME KNOW.

 

[jnj333]

FOUND ON ANOTHER SITE :-

UBS Investment Research report on Real Estate:

Real estate - some win, some lose

80IB benefit withdrawn - positive for large builders

The deadline of 31 March 2007 for claiming benefits under 80IB of the IT Act has not been extended. Benefits on projects that are already approved will still be available and hence should not affect the tax rate for next three years. The alleged misuse of 80IB by certain developers (as discussed in the press and we have mentioned previously) is likely to stop, which should be beneficial to large builders.
Positives � SEZs and hotels in NCR

The withdrawal of the 10A and 10B deduction for MAT is expected to encourage corporates to move to SEZs where 100% tax exemption is still available. The budget also proposes a five-year tax holiday for two, three and four-star hotels completed before 31 March 2010 and located in the NCT of Delhi or in adjacent districts of Faridabad, Gurgaon, Ghaziabad or Gautam Budh Nagar.
12% service tax on commercial rentals

Renting of immoveable property for commercial use has been brought under the service tax net. As per industry practice, for existing agreements the burden of the service tax would fall on the lessee. For new projects, this is likely to result in reduced bargaining power for developers, given that prevailing rentals are already high.

Unitech likely to be positively affected
In our view, Unitech is likely to be one of the key beneficiaries in the sector because of its lower exposure to commercial projects, low proportion of 80IBapproved projects, and proposals for hotels in the NCR region. We have a Buy 2 rating on Unitech, with a price target of Rs560. Our price target is based on our one-year forward DCF estimate. At the current market price of Rs364, the stock trades at a PE of 14.3x FY08E and 7.9x FY09E.

 

[lawrieking]

FOUND ON ANOTHER SITE :-

UBS Investment Research report on Real Estate:

Real estate - some win, some lose

80IB benefit withdrawn - positive for large builders

The deadline of 31 March 2007 for claiming benefits under 80IB of the IT Act has not been extended. Benefits on projects that are already approved will still be available and hence should not affect the tax rate for next three years. The alleged misuse of 80IB by certain developers (as discussed in the press and we have mentioned previously) is likely to stop, which should be beneficial to large builders.
Positives � SEZs and hotels in NCR

The withdrawal of the 10A and 10B deduction for MAT is expected to encourage corporates to move to SEZs where 100% tax exemption is still available. The budget also proposes a five-year tax holiday for two, three and four-star hotels completed before 31 March 2010 and located in the NCT of Delhi or in adjacent districts of Faridabad, Gurgaon, Ghaziabad or Gautam Budh Nagar.
12% service tax on commercial rentals

Renting of immoveable property for commercial use has been brought under the service tax net. As per industry practice, for existing agreements the burden of the service tax would fall on the lessee. For new projects, this is likely to result in reduced bargaining power for developers, given that prevailing rentals are already high.

Unitech likely to be positively affected
In our view, Unitech is likely to be one of the key beneficiaries in the sector because of its lower exposure to commercial projects, low proportion of 80IBapproved projects, and proposals for hotels in the NCR region. We have a Buy 2 rating on Unitech, with a price target of Rs560. Our price target is based on our one-year forward DCF estimate. At the current market price of Rs364, the stock trades at a PE of 14.3x FY08E and 7.9x FY09E.

JnJ/LjD

l take the liberty to comment as this is a open forum. I strongly beleive in the Unitech story and its fundas...The market is a result of mixed reaction. I am sure as we discuss there could be investor who would still throw negative on unitech but invest in this stock that they would criticize it in the forum....

"human tendancy" i guess

The company as i understand has done well and shown its potential.The returns should come in the right time.

patience and faith in the company of this value is important.

If i had more surplus i would continue to accumalate.

This is a good thread and would be benificial to all those who have invested when there is an opportunity so the FALSE fears are out.

cheers

 

[jnj333]

Unitech showing lot of strength in falling market.Locked in upper circuit right now. Can cross 450 in the short term. Hold on.

 

[jatayoo]

Hey, you guys have not mentioned that it may also become a penny stock in few months or the shares will be available for free. Cheers to that. Joke of the year.

CHECK THIS OUT-


SSKI India report on Unitech:

"Unitech, India's largest listed real estate company, is expected to be a significant beneficiary of the ~16bn sq. ft of residential, commercial and retail development expected to be undertaken in the Indian real estate market by 2010. Unitech has strong brand equity as also pan India presence with focus on residential development - the most profitable real estate segment. Moreover, the company's focus on outright selling of non-residential properties improves capital utilisation and enables it to grow its land bank rapidly. Our NAV-based fair value of Unitech's land bank of 14,211 acres and SEZs works out to Rs 621 per share. We initiate coverage on the stock with an Outperformer rating."

Indian real estate - a metamorphosis underway:

"A progressive regulatory framework and increasing importance of urban development are transforming the real estate landscape of India. We see sustained growth in all real estate segments going forward as robust economic growth and favourable demographics drive construction of ~16bn sq. ft by 2010E. Further, robust IRRs in the business throw up a big opportunity for real estate developers over the next 4-5 years."

Unitech, a pan India developer - the key beneficiary:

"Unitech has a strong track record of quality orientation and timely completion of projects in all segments of real estate development. Unitech's two-pronged strategy of focusing on residential development (the most profitable segment) and outright selling of developed non-residential properties (the most capital intensive segment) would enable it to effectively utilise capital for rapidly growing its land bank."

NAV estimated at Rs 621 per share - Outperformer:

"Unitech has a pan India land bank of 14,211 acres along with 3 multi product SEZ's. On the back of the huge land bank, we expect Unitech to sell ~215m sq. ft of space over FY07-10, driving a 23x rise in revenues to Rs 285 billion and 113x increase in profits to Rs 112 billion over FY06-10E. We have valued Unitech by discounting the free cash flows from all its residential, commercial, retail, hotel and SEZ projects, which works out to Rs 621 per share."


WANT MORE DATA, JUST LET ME KNOW.

The land bank of 14,211 acres works out to an area of 619.031160 million sq feet.Now the co will sell 215 million sq feet in 4 yrs.If the average height of a building is 4 floors then the co shall consume 53.75 million sq feet of the land bank=5.972 million sq yards and this is = 1234.93 acres or 11.51% of it's land bank.
Not bad & acheivable i think.Only rider is the assumed OPM% & NPM% by the Analyst
pl clarify these profitability ratios assumed by the analyst

 

[jnj333]

The land bank of 14,211 acres works out to an area of 619.031160 million sq feet.Now the co will sell 215 million sq feet in 4 yrs.If the average height of a building is 4 floors then the co shall consume 53.75 million sq feet of the land bank=5.972 million sq yards and this is = 1234.93 acres or 11.51% of it's land bank.
Not bad & acheivable i think.Only rider is the assumed OPM% & NPM% by the Analyst
pl clarify these profitability ratios assumed by the analyst

I feel The analyst estimate is on a conservative side, beside i have come to know from various sources that Unitech has increased its land bank from the no. stated in the report.It has increased land bank in Kerala and down south in Chennai where property prices are going northward. Sanjay chandra, MD Unitech has already stated a couple of months back that 65 million sq ft is under construction and if one takes just Rs.2000/sqft realization, (remember Unitech is mainly into premium apartments where it gets anywhere from 5000-8000/sqft), The revenue comes to be about 13000 cr (i Feel it could be more than double of this ), and it is able to get 30% net profit because of its premium segment so the revenue of Q3 of Rs.1000cr and profit of 400cr is just a tip of the iceberg. You can well imagine what we have here. Factoring all the negatives in the stock like rising interest rates, slowing of demand (there are no signs of slowdown In NCR and Kolkatta,chennai where the company holds majority of land bank) etc., i feel we still have a multibagger in our hands here. Just hold it for 1-2 years.

 

[jnj333]

Excerpts from Macqaurie Reasearch Report on DLF-13-03-07

DLF makes Unitech appear cheap

Unitech (UT IN, Rs384, OP, TP, Rs501) is trading at almost one-third of DLF’s
expected valuation of US$19bn, even though the size of the land bank is similar.
Clearly size isn’t everything, but applying to Unitech the multiple of EV/per sqf of land bank that DLF is looking at, we derive a Unitech share price of Rs976. If we apply a discount of 30% to Unitech based on its arguably inferior land bank quality, we arrive at a share price of Rs683. This implies upside of ~90% from current levels. It is also worth highlighting that these valuations do not include SEZ development plans for either company.

 

[uasish]

Hi,
My 2 bit for Unitech.
Chances are this scrip technically can go up in medium term.However a long legged Doji has occured on daily chart.There are 2 "Lakshman Rehka" to watch out for on upside Res= 438.25 / 456.35 / 467.75(Lakshman Rekha) & downside 413.10 / 382.10 (Lakshman Rehka).
These Lakshman Rehka has effectively worked & working for me.

Asish

 

[jnj333]

Some correction expected due to rate hike, good opportunity to buy for long term investors.