Stock market analyst VK Sharma maintained ‘Buy’ rating on Unitech Limited to achieve an intraday target above Rs 100.
 
According to Mr. Sharma, investors can buy the stock around Rs 97.55 with a stop loss of Rs 95.60.

If the stock market remains positive, the next intraday target should be above Rs 102.

Shares of the company, on Thursday (June 04), closed at Rs 97.55 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 5.62 & 17.96 respectively. The share price has seen a 52-week high of Rs 224.40 and a low of Rs 21.80 on BSE.

Unitech, on June 01, has decided to pay back around Rs 20 billion of its arrears, and bring it below Rs 60 billion level by 2009-end.

The intention would be met through incomes from sale of a range of assets that comprise hotels and school plots, and also non-core investments.

During the last three months, the company has already repaid around Rs 20 billion of debt whereas it has replaced loans worth more than Rs 40 billion from high-cost debt facilities to cheaper loans.

On May 26, it is discovered that Unitech has sold a hotel in Gurgaon for Rs 2 billion and is about to sell another hospitality project by the end of June for a similar amount.

This is a part of company’s fund raising plan to lessen arrears.
 
Moreover, the company sold its office building in Saket, New Delhi, on May 21, for Rs 4.25-4.50 billion to a nameless property investor.

Unitech, on May 20, declared that its division, Unitech Wireless got an approximate amount of Rs 11.30 billion in aggregate from Telenor Asia for acquiring additional 15.5% stake in the subsidiary company via issuance of fresh shares therein.