Friday, March 02, 2012

DLF Worth just 50% of its Vaulation - Veritas

DLF known for its controversial IPO where small investors were looted is facing irk from professional Investment Research firm based out of Canada and very well known for its unbiased and bold SELL Reports due to bad management practices.

Veritas does not believe in the the disclosed book equity and asset base of the Company. DLF via its dealings with DLF Assets Ltd, from FY07 to FY11, the Company inflated sales by at least INR 11,236 Cr and its profit before tax (PBT) by INR 7,233 Cr. DLF has undertaken questionable related party transactions to boost the value of DAL prior to its acquisition by DLF, thereby subverting the interest of minority shareholders via a higher purchase price for DAL.

Fake Promises of DLF Management:
JV with Hilton has ended and Silverlink Resorts is up for sale
build mega townships (exited Bidadi in Karnatka and Dankuni in West Bengal)
build a mega convention center in the NCR region (exited in 2009)
None of the above have materialized.

Veritas finally concludes the report with a best case valuation of DLF is worth INR 100/share - less than half its current stock price of INR 226.9.

Ministry of Corporate Affairs Orders Inquiry: The MCA has ordered an inquiry to Audit the Books of Accounts of DLF after it has received complaints from Investors.

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