August 21, 2018 / 7:11 AM / 5 months ago

BUZZ-Pick-up at DLF still several quarters away - HSBC

** Real estate developer DLF Ltd’s operating business has stabilised but new accounting standard hurts - material pick-up is still several quarters away, says HSBC Global Research

** DLF’s adoption of new accounting standard IndAS 115 has resulted in 15 pct net worth erosion or equivalent of 6-7 years of reported profitability pre-FY18 and de-recognition of 140 bln rupees of sale - HSBC

** As per IndAs, real estate companies including DLF can recognise revenue only on completion of projects

** Earlier this month, DLF reported a 26 pct fall in qtrly revenue from ops

** HSBC retains ‘hold’ rating, and maintains target price at 217 rupees

** Shares of DLF fall as much as 3.5 pct to 207.25 rupees on Tuesday, biggest intraday pct drop since Aug. 2

** Stock down 17 pct this year as of last close

** DLF is top drag on Nifty Realty index, which is down as much as 1.7 pct

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