Stock market analyst Ashwani Gujral has suggested investors to 'sell' DLF stock as there are full chances of a downward trend in this stock in the coming days.

According to Mr. Gujral, investors can sell the stock with a stop loss of Rs 426 to achieve a target of Rs 350.

Shares of the company, on Wednesday (June 10), closed at Rs 395.80, down 1.71% from its previous closure of Rs 402.70 on the Bombay Stock Exchange (BSE).

Current EPS and P/E of the stock stood at 9.12 & 43.40 respectively. The share price has seen a 52-week high of Rs 576 and a low of Rs 124.15 on BSE.

Mr. Gujral also suggested that it’s advantageous to sell the stock at the said level as the counter is under huge pressure.

He also said that if the stock fell below Rs 342, it may fell further.  

After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

Indian administration has given in-principle sanction to the company to take out four of its IT, ITES, SEZs that it didn’t want to make in spite of slowdown in the real estate business.

However, the board of approval (BoA) in the Commerce Ministry ordered the company to return all the tax sops it had taken from the Centre before its special economic zones in Gujarat, West Bengal, Orissa and Haryana to be de-notified.

The sources said that BoA, led by commerce secretary G K Pillai, also permitted additional time to the K Raheja group to set up its tax-free zones in Goa, Hyderabad and Navi Mumbai.

DLF promoters, on May 13, sold around 10% stake in the company to lift around Rs 38.60 billion for paying up its outstanding arrears.

On May 15, the company has decided to lift Rs 100 billion by 2012 from asset sales as it aims to reduce its arrears.

In an analyst presentation earlier this month, the company stated that its net debt stood at Rs 139.58 billion at the end of March.

It has decided to pay back Rs 75 billion by selling non-core assets including its wind power unit and from part collection of the money owed to it by a property trust, DLF Assets.