those ears..

But no Kulman ji,  most of the time, Tulsian gives fairly logical advice in his moneycontrol chat. I am beginning to like the above DLF quote because it is the longest statement ever made on Moneycontrol, with optimum usage of commas & and's.

Mark my words - this quote will be as popular as some of the Warren Buffet quotes.

DLF set to bag MCD project

13 Jul, 2007, 2215 hrs IST, PTI

 

 

NEW DELHI: Real estate behemoth DLF is all set to bag a civic centre project from Municipal Corporation of Delhi (MCD) in the heart of the national capital, for which it is understood to have made the highest bid of Rs 398 crore.

 

MCD had invited expressions of interest from developers for taking on 30-year lease about four lakh square feet of office space along with auditorium and food court.

 

"DLF and Parsvnath were the two bidders for our civic centre project near Minto Road," a senior MCD official said.

 

He said 50 per cent of the area under the civic centre would be occupied by the winner of the contract.

 

Market sources said that DLF has emerged as the highest bidder with the bid of Rs 398 crore while Parsvnath came second with Rs 326 crore.

 

When contacted, DLF official declined to comment as the bidding process was not completed.

 

The development of the civic centre was being undertaken by the MCD itself, the sources added.

 

Apart from the upfront payment, the winner would have to make an yearly payment of 2.5 per cent of the bid amount as rental, they said.

 

After the successful IPO of over Rs 9,000 crore, DLF has already emerged as a sole bidder for two projects in Delhi and Bangalore.

 

While the Dwarka project is for developing convention centre, that in Bangalore is an integrated township of over 9,000 acres. 

 

Source: http://economictimes.indiatimes.com/articleshow/2202211.cms

Edited by vishal.sahay - 13/Jul/2007 at 11:55am

Those bullish on DLF would read this article as - 'The fair value of DLF is Rs. 1,000 then'. Those bearish on DLF would read this article as - 'DLF management are a bunch of crooks, always planning to loot poor investors'.

I belong to the former camp. The management offering lower number of shares than originally planned is a good sign.

Who is the 'rival camp'?

Real estate stocks are never evaluated on the basis of PE and EPS what if DLF sells all its property this year where will the EPS come in the next year?

On CNBC, there was a small item that DLF might show a net profit of Rs. 2,000 crores for Q1 and revenues of something like Rs. 4,000 crores (don't remember the exact numbers). But as you said, looking at these numbers and evaluating DLF on P/E basis doesn't make sense since they are asset heavy companies

But is it a good idea to REMOVE the revenues/profits generated by sale of assets and then evaluate real estate companies based on traditional parameters like P/E and EPS?