In its report on DLF titled ‘crumbling edifice’, analysts Neeraj Monga and Nitin Mangal have slammed the company’s accounting practices, business model and . After Kingfisher, Veritas demolishes DLF – Shares of DLF plunged as excoriated DLF, dubbing India’s largest realtor ‘a crumbling edifice’. Meanwhile, in a report titled A Crumbling Edifice, analysts Neeraj Monga and Nitin Mangalof Veritas Investment Research Corp. said DLF was.

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Canadian equities research firm Veritas Investment Research, which hit the headlines last year for raising fingers at corporate governance of some of veritss top business groups in the country, is back doing what it does best — ripping apart companies which it finds overvalued and not shying away or mincing words while doing so.

According to the latest report by Veritas, the stock should be valued at Rs per share. As the report surfaced in the market, quite a few realty analysts across brokerages agreed with Veritas’ research rationale.

DLF’s accounting gets a close look

However, this report in question is presumptive and mischievous as the analysts have never contacted the company to seek any information or clarification. The company adheres to the highest editice of corporate governance and financial integrity, and the evifice financials of the company are always in the public domain.


It also points out that after the mega IPO of the realtor in at an issue price of Rs per share, the company has seen its share price declining 57 per cent, compared to an approximate gain of 29 per cent in the stock benchmark market crmubling Sensex in the same period. Other large companies which have come under the Veritas scanner are Reliance Industries, Reliance Communications and financially stressed aviation firm Kingfisher Airlines.

The Veritas duo believes that DLF will seek assistance from financial institutions to restructure its loans.

Why DLF Should Be Valued Half Its Current Market Cap: Veritas | VCCircle

According to the report, DLF has faltered at every step — by selling its hotel assets and exiting mega township projects in Karnataka and West Bengal, to name a few. Also, the report cites an example of its Capital Greens project and abusing the percentage completion edificee POCM in the same.

POCM is the most favoured way of booking revenues by realty players in the country but its authenticity has been widely questioned by analysts.


The report does not spare the promoters either.

India Equity Research: Sell DLF: A CRUMBLING EDIFICE: Veritas ( overview of recommendation)

crumblibg While DLF said that it had accepted the recommendation of the special committee, which consisted of independent directors, its independent advisors and valuers for the merger, nowhere had it stated the valuation figure.

But it could not meet its non-core asset sale guidance on Aman Resorts and other assets which had, once again, put a question mark on its ability to reduce debt on books.

Currently, it has gross debt of around Rs 25, crore. Log in Keep me signed in.

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