Citigroup downgrades DLF to 'sell' from 'neutral'
Citigroup downgrades property developer DLF to "sell" from "neutral" and cuts its target price to 150 rupees from 209 rupees.
"High leverage and mounting interest costs combined with tough macro, slowing demand, and the possibility of tighter liquidity pose significant downside risks," Citigroup said in a note dated on Thursday.
Citigroup added DLF would need a "rapid" resolution to its debt burden to preserve equity value over the medium term.
DLF is shedding non-core assets to pare debt, announcing on Thursday it would sell its 74 percent stake in a life insurance joint venture with U.S.-based Prudential International Insurance Holdings Ltd to Dewan Housing Finance Corp.
DLF shares were up 0.1 percent at 12.14 p.m.