Unitech is a rage as it rages against brokers

Unitech surged 37.71% to Rs 41.45 at 10:37 IST on the BSE on filing complaint with the market regulator against some brokers for hammering its shares 51% on 24 October 2008.
The stock had hit a high of Rs 43.70 and a low of Rs 27.20 so far during the day. Its 52-week high of Rs 546.80 was on 2 January 2008 and 52-week low of Rs 26.60 on 24 October 2008.
India’s second largest real estate developer by market capitalisation has an equity capital of Rs 324.68 crore. Face value per share is Rs 2.
The current price of Rs 41.45 discounts its Q1 June 2008 annualised EPS of Rs 7.42, by a PE multiple of 5.58.
Reports quoted Unitech MD Sanjay Chandra as saying that there were certain brokers who have been targeting Unitech and spreading malicious rumours for short-term gains. The company is in the process of filing complaint with Securities & Exchange Board of India (Sebi).
Unitech share price halved on Friday last week following reports that the firm had defaulted Rs 150 crore of payments to Greater Noida Development Authority for a 100 acres of land deal struck in 2006.
Unitech, however, clarified to the stock exchanges during market hours on 24 October 2008, that payment for land in Greater Noida was to be made over five years. The company had made all the initial payments well in time. However, due to issues related to land acquisition by the concerned authority that resulted in agitation by the local farmers, the company could not progress with the construction.
There has been a delay of about 15 months in giving of peaceful possession of land by the authorities. In order not to penalize the developer for reasons not attributable to the developer, the Greater Noida Authority had revised the payment schedule. Unitech was currently not in default and was never in default with regard to payments to the authority, the company further added in the statement.
Unitech’s net profit rose 13.4% to Rs 301.31 crore on a 3.1% fall in sales to Rs 739.82 crore in Q1 June 2008 over Q1 June 2007. The company will declare the Q2 September 2008 results on 31 October 2008.
Unitech develops residential areas, commercial spaces, amusement parks, infrastructure development, thermal power plants, transmission lines, highways, flyovers, industrial facilities, steel plants, and overseas turnkey projects. The company, which diversified in telecom sector has initial spectrum in 13 service areas out of the total 22 service areas.