Cautious on Unitech - Kotak

Sales and launches taper off - no improvement in balance sheet

Unitech's 3QFY12 reported numbers were below estimates across the board. EBITDA margins have settled in the range of 20-22% over the past few quarters against our expectation of an improvement.

There has been no improvement in the balance sheet as net debt remained broadly sequentially constant.

We keep our rating and target price suspended in light of outstanding issues (2G and pledged shares). Our stress case valuation is Rs46 a share.

Source : Equity Bulls

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