UNITECH is engaged in the construction business of residential and industrial buildings, transmission lines, highways, hotels, and overseas turnkey projects. They started business on February 9, 1971 as a private limited company but soon on October 3, 1971 changed the business to a public limited company. It has many major projects in hand including 1750 acres projects “Knowledge City” near Vishakhapatnam, a project of $720 million in association with Marriot International to build 28 hotels in 4 years.
An analyst Mr. Salil Sharma recently told on CNBC Awaaz that he feels one should not hold Unitech Stock any more. It is trading badly, looking weak on charts, if anybody wants to invest in this sector, he should go for DLF, which is a much better option.
Oberoi Realty a Mumbai based company has become the second largest real estate company in India by surpassing Unitech in terms of market capitalization. DLF since its listing in 2007 July has retained the top position in real estate sector in terms of market capitalization value with Rs. 39,444 crore, now the second position is held by Oberoi Realty with Rs. 7,372.12 crore and then comes Unitech with Rs. 7,149.92 crore.
However, the CEO of Dynamics Research and Capital Management, Mr. Sanjay Agarwal feels, the stocks of Unitech has experienced a very good bottoming pattern. It is a good idea to buy Unitech stock at the current price of Rs.27.00 with a stop loss little below this level and expect to reach Rs. 35 within a short period.
A recent survey conducted by among 156 analysts revealed that out of 156 experts 136 recommended buying Unitech at current level (Rs. 27.00), where as 12 experts think otherwise and advice to sell at this level. 8 persons did not respond.
So, 87.172% experts recommend buying Unitech.
Here are few fundamental data on Unitech:
- Face Value per share Rs 2.00: EPS Rs. 1.95 (March 2011)
- Net Profit Margin 23.52% (March 2011); Last Bonus 1 : 1 (May 28, 2007)
- Last Dividend 5% (May 30, 2011)
- Last 52 Weeks High /Low: Rs. 96.00 / Rs. 24.80
Latest News On Unitech Ltd.
Unitech is having a legal battle in Company Law Board with Telenor, its partner in Telecom business (UNINOR) over a matter of $ 1.70 billion right issue. Unitech owns a stake of 32.75% in UNINOR where the rest is held by Telenor. Telenor argues that right issue is required to meet long time financial requirement. But Unitech advocated in favor of a long term bank loan from State Bank of India that Telenor refused in November 2010. Unitech maintains that there is no more need of fund and the executives of TELENOR are not running the UNINOR satisfactorily.
In the annual general meeting held on September 29, 2011, the shareholders of Unitech rejected the Board of Director’s proposal to pay a dividend at the rate of Re. 0.10 per share amounting to Rs. 30 crore for the year ending March 2011. They preferred to use this fund for business purposes to avoid high rate of interest on borrowing.