SELL Unitech - Goldman Sachs

In a report released just minutes ago, Goldman Sachs retains SELL on Unitech Ltd due to weakening property market and shakened management which is reporting very poor sales.

Just yesterday I had said how bad the situation was especially with Unitech [Project Launches Postponed and analysis by City wise]. Goldman Sachs Analyst in a Research note said,

Unitech sold close to 7 mn sq ft and an implied 3700 units in FY08 which is a marked slowdown from the 7000 units sold in FY07. The Management has indicated that this reflects a fall in speculative demand and that end-user demand is still strong in NCR. However, we do not find the significant fall in units sold reassuring.We believe Unitech has to adapt to a changing environment with lower sales volumes, and may need to realign its product portfolio.

Goldman Sachs has maintained a SELL on Unitech. In a separate development, ICICI and HDFC have hiked lending rates including for Home and Property Loans.