February 18, 2013 / 8:49 AM / 5 years ago

DLF gains on hopes of earnings recovery, lower debt

A man cycles past the construction site of a residential apartment building by property developer DLF Ltd. in Gurgaon January 27, 2010. REUTERS/Adnan Abidi/Files

Reuters Market Eye - Shares in DLF Ltd(DLF.NS) gain 5.2 percent, recovering from four sessions of falls.

Rebound in shares comes after DLF vice chairman Rajiv Singh indicates earnings would improve and says net debt would fall, according to analysts who attended the company’s first ever post-results analyst meeting on Friday.

CLSA upgrades the stock to “outperform” from “sell”, and raises target price to 280 rupees from 180 rupees, quoting Singh as painting “an optimistic outlook” for earnings.

Singh guided for EBITDA potential of 82.5 billion rupees over the next two to three years and said DLF would halve net debt by half over the same period, CLSA says.

DLF said on Thursday October-December consolidated net profit rose a slower-than-expected 10.5 percent to 2.86 billion rupees.

Reporting by Manoj Dharra

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