Discrimination faced by Mumbaikars...

If the housing societies in Mumbai (Bombay) are only meant for families (married couples), then the government of Maharashtra should make marriage compulsory in the state/city.
Or else the government should tell its citizens where will Unmarried, Divorcees, Bachelors, Spinsters live in the city of skyscrapers or is Bombay only for those who have families.
This is one of the greatest mental blocks of Mumbaikars, who otherwise want to bask in the FALSE HALO of Cosmopolitanism.
This disease (of not giving apartments to Bachelors, Muslims, etc on rent) is specially prevalent in housing societies where the Gujaratis, Marathis and North Indians (to some extent) abound; while the rest of the population is more or less okay with the concept.
The government of Maharashtra should take this matter seriously and devise laws to eradicate this malice ASAP, so that BOMBAY (and its suburbs) becomes free of discrimination based on Marital Status, Religion, etc. Or else the Honourable Supreme Court of India should step in, and give directions to the state or central governments -- so that the fundamental rights of its citizens enshrined in the constitution of India is not violated.

Saturday, May 25, 2013

Housing Development Infrastructure Ltd (HDIL): Rationale Behind My Recommendation
CMP: Rs.49.15
(i) If you carefully observe the video below, you find that Mr.Hariprakash Pandey, VP-Finance, HDIL is saying that the company's debt as compared to December, 2012 has come down by Rs.200 Cr and there are no plans for further dilution of the stake by the promoters. HDIL was once Mumbai's (Bombay's) largest company by market cap in the Real Estate Sector.
(ii) Some of its short term borrowing have been replaced by long term ones. Hence, this is expected to bring much relief, in terms of  solving short term financial pressures. Moreover, the company is servicing its debt as per schedule.

(iii) The company continues to get better realizations from the sale of its projects. During Q3FY13 quarter, the Company launched the Second phase of Virar Residency Park at Virar (Mumbai Metropolitan Area).

(iv) The promoters could initiate a BUY BACK of SHARES of the COMPANY, from the end of June, 2013, as 6 months statutory period (after the selling of the shares by the promoters), will be over, within a few weeks from now.

(v) The interest rates are further set to go down and price of commodities are expected to come down further or remain within a range. Fall in crude price would also keep the price of diesel in check, which will further add to the bottomlines of Real Estate Companies, who use heavy equipments (which are run on diesel) for construction. All these factors are positive for the real estate companies. Besides, the Finance Minister P Chidambaram said on Friday, "India Inc should stop looking abroad and focus on tapping huge investment opportunities within the country, especially in the infrastructure sector, which offers long-term benefits". This is also seen as positive for all the stocks in the Real Estate Sector. 

(vi) The book value of the shares of the company is Rs.239.53 and 9MEPS stands at Rs.8.43 on a consolidated basis. Now considering its market cap of only Rs.2059.40 Cr and its P/E of 4.08 against the industry average of 18.36, we can safely put a target of Rs.122-125, for the scrip in the immediate short term (2-3 months).

Note: I am still reeling under multiple (orthopedic) injuries on my body, after a nasty fall. I have therefore, tried to update this blog very briefly, and to the best of my abilities. It will perhaps take some more time before my wounds get healed, satisfactorily.