Hi All,
In my earlier thread I had mentioned that I have narrowed down on Sunbreeze/Vista for something in my budget

As I am/was about to close the deal, have been warned by few people that Unitech is NOT A GOOD BET because of all the delays and mess they are in and there are other good options..

I am back to square one now :( Experts please advise if I should go ahead with the deal? And if not then, other good options in my budget..

PLS HELP SENIOR GUYS..

I am back to square one now :( Experts please advise if I should go ahead with the deal? And if not then, other good options in my budget..

PLS HELP SENIOR GUYS..
Read more
Reply
33 Replies
Sort by :Filter by :
  • If you are prepared for delay. I would say go for it.

    SPR properties are the most VFM at this point in time at 4500 or so.

    Even projects in sectors like 102/90 ware being sold over 5000

    Once complete SPR is operational , all the properties will get rerated....

    But if you dont want delays and get tensed very easily - then avoid it!!!
    CommentQuote
  • Thanks Amit.. Yes I can hold on for some time but not infinity:(
    Hope Unitech delivers// How about Tulip over Unitech, considering the construction is going at steady state/

    BTW, what is the current rate in which we can get offers in these projects?
    (1) Unitech Sunbreeze
    (2) Unitech Vista
    (3) Tulip

    I am interested in 2 BHK
    CommentQuote
  • I am not sure Unitech will able to complete its projects... many banks hv stopped funding unitech projects... avoid Unitech
    CommentQuote
  • Tulip is also good.

    I am not aware of resale rates of these projects..

    Buy anything on SPR..

    Tulip should be in the range of 4000-4200

    But you will have to shell out lot of builder payment and premium (Heavy upfront)
    CommentQuote
  • PNB Housing Finance and HDFC are funding all the projects.

    Lets talk facts and not speculation.

    Originally Posted by samie001
    I am not sure Unitech will able to complete its projects... many banks hv stopped funding unitech projects... avoid Unitech
    CommentQuote
  • Are we trying to say that Unitech will go bankrupt?
    I mean there are lots of projects in NCR only that are at stake/// I dont think this should happen, otherwise many innocent ppl like us will be the sufferers :(

    Regarding tulip, from where will be the entry, darbaripur road??? that looks awful
    CommentQuote
  • NEW DELHI: Realty major Unitech today reported 50 per cent dip in consolidated net profit at Rs 55.22 crore for the third quarter ended December, on account of lower sales.

    The company had posted net profit of Rs 111.36 crore in the October-December quarter of 2010-11 fiscal. Its Q3 net sales fell 22 per cent at Rs 513.90 crore, as against Rs 659.79 crore Q3, 2010-11.

    Unitech said its net debt reduced by Rs 383.59 crore in the first nine months of the current fiscal, 2011-12 and stood at Rs 5,190.26 crore as on December 31, 2011.

    "Business environment remained challenging during the quarter affecting company's ability to scale up the construction activity," Unitech Managing Director Ajay Chandra said in a statement.

    The company said it has a healthy balance sheet with a net debt to equity ratio of 0.43 as of December 31, 2011.

    "The net debt to equity at 0.43 is well within the targeted level of 0.50. We have been continuously reducing debt by utilising cash flows from operations," Chandra said.

    Unitech has achieved a sales booking of Rs 941 crore during the quarter by continuing its focus on affordable/mid- income housing segments.

    In the first nine months of the current fiscal, Unitech sold 5.4 million sq ft for a sales value of Rs 3,029 crore. It launched projects totalling 7.17 million sq ft.
    CommentQuote
  • CommentQuote
  • The JP Morgan report (March 2011 )has valued the land at Rs 19,200 crore (As on March 2011) and they have taken two large land parcels, that is, 900 acres in Gurgaon and 350 acres in Noida

    JP Morgan upgrades Unitech to overweight, raises target price to Rs 60 - CNBC-TV18 -

    A company with 20,000 + crore of land can not go bankrupt.

    At worst we are looking at delays
    CommentQuote
  • DEBT NEEDS
    A key monitorable for the two companies will be debt. While debt in the case of Unitech looks more manageable, with a debt to equity ratio of 0.46, it increased for DLF during 2010-11 by Rs 1,800 crore due to investments in land and in its rental business. Unlike Unitech, reducing its net debt of Rs 21,424 crore has become a priority for DLF. In a investor conference call, Saurabh Chawla, executive director, finance, said it intends to do this by strengthening operational cash flows, enhancing the pace of non-core divestments and moderating investments in land aggregation and capital expenditure. The company has more than doubled its divestment target from Rs 4,500 crore to Rs 10,000 crore over the next two to three years. This is likely to bring its debt to equity levels from the current 0.8 to more manageable levels

    Source-http://www.business-standard.com/india/news/margin-volume-worries-blight-dlfunitech/437243/
    CommentQuote
  • Unitech Current Financial Situation

    Assets as per B/S - 15000 Crores (Dec 2011); Source Money Control

    Debt of the Company - 5,190 crores (Dec 2011): Source Economic Times

    Excess of Assets over Debt = ~ 10,000 crores

    Market value of land holdings = 20,000 crore (JP Morgan report march 2011)

    Excess of MV over debt = 15,000 crores


    The profit Unitech made by selling licenses to Telenor; Source ED disclosure (See Excel spreadsheet attached)

    Excess of MV of Land over Debt and Profit from Telenor (It is still unlikely that Telenor can recover this money (See article attached; this is extreme worst case) = 20,000-5000-2300= 12700 crore



    CommentQuote
  • Yes Amt.. That's what even I think..

    But somewhere still within there is a hitch considering the present set of records. In the last 2 years, they have built just ground/first floor of sunbreeze.. By this rate they will take 10 yrs to complete.

    Need specific reviews about Sunbreeze as its valuation is lower that Vista as on date..
    CommentQuote
  • See if they come up with a project at market price.

    I would say AVOID unitech as to why to take even 1% chance

    But with Sunbreeze/Vista - they are undervalued because of 2 reasons:

    Slow place of construction of project
    Unfinished patches of SPR

    Once there is a change in any of these - prices should jump

    But if yiu think you will loose your sleep after investing here. Then AVOID

    at the end what matters is peace of mind
    CommentQuote
  • I am looking at a time horizon of 3 yrs.. How bt these two factors after 3 yrs down the line//

    Other good options - pls suggest
    CommentQuote
  • Look at Vista in that case.

    Sunbreeze work was started late because of some approvals. So I think it is only been 6 months before the work was started ( I am not 100% sure on this)

    Other options are

    NH8 - Palm Hills/Vatika/Vipul

    D Way - Chintels/Mahindra

    GCX - Uptown

    SPR - Tulip/Unitech/Spire

    See what suits your cashflow
    CommentQuote