About Unitech Group

Attribute PE ratio EPS (Rs) Sales (Rs crore) Face Value (Rs) Net profit margin (%) Last bonus Last dividend (%) Return on average equity Value 14.62 1.95 406.43 2 29.72 1:1 5 5.49 Mar, 11 28/05/07 30/05/11 Mar, 11 Date 08/02/12 Mar, 11 Sep, 11

Volume Prev Close Day's H/L (Rs) 52wk H/L (Rs) Mkt Cap (Rs Cr)

869,133 30.00 30.25 - 29.60 48.80 - 17.45 7,796.57

# of Estimates

Mean

High

Low

1 Ago

Year

Quarter Ending Mar-12 NameAgeSinceCurrent Position Ramesh Chandra Executive Chairman of the Board Manoj Popli Chief Financial Officer

11,160.90

12,725.00

8,537.00

Deepak Jain 2009Compliance Officer, Company Secretary Ajay Chandra Managing Director, Executive Director

Sanjay Chandra 2004Managing Director, Executive Director Minoti Bahri Non-Executive Director G. Ambwani 75Non-Executive Independent Director Sanjay Bahadur 49Non-Executive Independent Director Anil Harish 57Non-Executive Independent Director P. Mohanty Non-Executive Independent Director Ravinder Singhania 2005Non-Executive Independent Director The Economic Times reported that Unitech Limited has put on hold its plans to demerge the infrastructure vertical indefinitely on account of sluggishness in economy. Unitech BUY Any upthrust in this counter over the short term can result in a breakout above the upper area of the trend channel. Unitech can then be headed for 38-40 in the next 4-5 months. Unitech (UT) Q2FY12 revenue at Rs6,261mn increased 5% QoQ and in line with our estimate. Area sold during the quarter was at 1.8msf (1.56 -residential; 0.24- non residential) v/s 1.9msf in Q1FY12. Company delivered 0.5msf during the quarter and launched 2.8msf. Going ahead we expect 9.6 msf and 10.4 msf of sales in FY12e and FY13e respectively.""EBIDTA margins improved sequentially by 196 bps to 22.1% in Q2FY12 but substantially lower( 1700 bps) on YoY basis. The raw material cost as percentage of sales in Q2FY12 is 68% which was 75% in Q1FY12 and 57.3% during Q2FY11. We expect margins to further improve as revenue contribution from older projects decline. EBIT margin for Real estate segment improved 400 bps to 30% as against 26% in the previous quarter. Average realization during the quarter improved to Rs5,933psf for the area sold from Rs5,362psf in Q1FY12. Net Debt sequentially reduced by Rs1,860mn in Q2FY12. Net D/E now stands at 0.43 (v/s 0.44 on June'11).In absolute terms debt is still high and we believe that company should start focusing on large size assets( UCP stake dilution) and non core assets sale to improve free cash flow for strengthening the business and margins.""We maintain 'BUY' with a reduced target price of Rs45 (from Rs55) post 40% discount to NAV. We believe Unitech Infra listing and new launches from the company are likely to be key triggers going forward," says PINC Research report.