At the current market price of Rs 322.65 the scrip trades at 24.87x of FY10 EPS (consolidated). The 52-week high and low PE is 24.08x and 4.55x which averages to 14.31x. The scrip has gained 118% in the past three months as against markets gain of 58%. The UPA government win with a clear majority has boosted the sentiments. However the steps taken by the government to induce economic activity will not give immediate effects. Realty sector will face challenges ahead due to lower consumer confidence and no incremental sales. We recommend a sell with a target price of Rs 208 which is 16x EPS of FY10. Currently Sensex is trading at a PE of 19.43 and Nifty is trading at 20.41. There will be no immediate changes in the scenario of realty sector but as the market has entered bullish trend and DLF being index scrip we feel PE of 16 is justified.
Educomp Solutions reported 89.5% jump in Income from Operations to Rs 496.7 crore from Rs 262.1 crore. The EBIDTA was up by 114.9% to Rs 267.9 crore. EBIDTA margin improved to 53.9% from 47.6% recorded in 2008. PAT was up by 83% to Rs 128.2 crore. On consolidated the company reported Net income from operation of Rs 634.2 crore from Rs 287.2 crore recorded the same period previous year (jump of 120.8%). We maintain our target price of Rs 3,570 per share.
The sister concern of the same promoter being titled as "Everonn Systems" also holds good position int he present scenario.