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- How silly that report sounds now after the recent crash!
DLF is now 74% down. And their share buyback plan (like the $700 Billion Bailout Plan) has failed since prices have crashed to 300. This buyback is only a ploy to artificially raise stock prices to 600 so that they may once again CON the public with another rights issue to raise money at inflated prices. DLF NEEDS LOTS OF MONEY NOW!!! And they have nowhere to go but to the public for cheap money. BEWARE!!!
Sobha is now down 91% from peak. And their plan to raise 400 crores with Rights is also in grave danger of failing.
Sharply declining Industrial and other production as well as a serious Global recession/depression will lead to sharp pullback by banks towards lending. Many jobs will be lost - even in India. Salaries will go south bigtime.
With sharply reduced sales and large, high-cost inventory built on high leverage and low capital coupled with thin margins (which will get wiped out soon), expect most Builders to get into a DEBT-TRAP very soon.
Distress sales will start very soon. Then you will see a serious, all-out price war. I maintain what I have been saying in other posts on thos forum.
Bubbly areas like Bangalore, Hyd, Gurgaon, Pune, Chennai, especially in IT zones will see as much as 50% to 80% declines from peak 2007 prices.
WAIT. HOARD CASH. In recession, CASH is KING!