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Friday, January 21, 2011

Stock Review: Housing Development & Infrastructure (HDIL)



The realty sector remained an underperformer in the stock market for the most part of 2010. But given the volume growth in the past two quarters, realty stocks may see an upside in the New Year. Housing Development & Infrastructure (HDIL) is expected to be a major beneficiary, given its relatively lower debt and a stronger asset portfolio. Close to 70% of its revenue comes through the sale of TDR (transfer development rights). The key factor to watch is its ambitious Mumbai Airport Rehabilitation Project (MIAL) by the end of March 2011, which is going to be a major revenue contributor in the coming years. It's currently trading at a price-toearning ratio of nine compared to the average industry P/E of 24. Investors can buy this stock for the long term.

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