Macquarie Capital Securities has upgraded HDIL with revised target price to Rs 104 from Rs 64 earlier.

Commenting on the investment rationale, the broking firm said, "HDIL has reduced its debt by Rs 10 billion over last four quarters driven by asset sales (entertainment, leisure businesses etc). HDIL’s net debt stood at Rs 32 billion at 3Q FY15 end and the company expects to bring it down further to Rs 28 billion by FY15 end. We are building in Rs 30 billion of net debt at FY15 (from Rs 40 billion earlier).

We revisit our investment thesis on HDIL given that the company is delivering on its debt reduction plans. We note that HDIL is a high risk, high return stock where news flow often remains volatile. We upgrade the stock to Outperform (from Underperform), raising our target price to Rs 104 (from Rs 64 earlier). The increase is driven by debt reduction and lowering of discount to NAV to 20% from 40% on account of improving visibility of launches."

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