Talking Stock: DLF, Unitech, Suzlon and BHEL

Goldman Sachs downgraded DLF to 'neutral' from 'buy', saying slower approvals could result in fewer project launches, while cutting its pre-sale estimates for India's largest property developer. Goldman also removed DLF from its Asia-Pacific buy list and cut its 12-month target price to Rs 224 from Rs 257. 

 

However, UBS maintained a 'buy' rating on the company. The bank has said it expects limited impact on DLF's business following recent accusations by anti-corruption activist Arvind Kejriwal of improper dealings with Robert Vadra, son-in-law of ruling Congress Party chief Sonia Gandhi, and Haryana government. "With the stock down 11 per cent on the back of this news flow, and our expectation of no material impact on DLF's business — we believe concerns are largely priced in," UBS said in a note dated 10 October. DLF has denied accusations of improper dealings. 

 

Unitech shares rose as much as 5.6 per cent after the company said it has agreed to dispose of its shareholding in its mobile joint venture Uninor after reaching a settlement with partner Telenor on their legal dispute. Unitech did not provide details of the settlement due to confidentiality obligations. Unitech shares were up 3.9 per cent as of 9:34 a.m.

 

Shares in India's Suzlon Energy fell as much as 5 per cent after the bondholders of the world's fifth-largest maker of wind turbines rejected a proposal to extend the maturity of its overseas convertible bonds by four months. About $221 million in dollar convertible bonds issued by Suzlon are due on 11 October. Suzlon shares were down 4.2 per cent at 0359 GMT, compared to a 0.16 per cent fall in the NSE index.

 

Nomura downgraded Bharat Heavy Electricals Ltd to 'reduce' from 'neutral', saying a revival of new orders was "unlikely" and lower-than-expected coal supply could lead to order cancellations. Rising competition and falling utilisation could also impact margins, Nomura added. The bank maintained its target price on India's top power equipment maker at Rs 199.