The Punjab and Haryana high court ordered to cancel allocation of 350 acres of land in Gurgaon to real estate group DLF. The High Court, while upholding the acquisition, has passed certain observations regarding the allotment of the said land to DLF.

Commenting on the same, Parikshit Kandpal, Karvy Stock Broking  said, ''It's difficult to forecast the outcome of the case as the matter is Subjudice and DLF may contest the same in the Supreme Court. Purely on the financial basis we have valued the land at Rs 30 billion in our DCF model and assuming that the State Government refunds Rs 10 billion amount with interest the valuation hit could be to the extent of Rs 15 billion or Rs 8.2/share. We currently have Buy stance on DLF with a SOTP-based target price of Rs 240/share on DLF. Our valuation is based on 0.77x our end-FY15E NAV. The stock broker has recommended 'Buy' on DLF with target price of Rs 240 as against current market price (CMP) of Rs 174.''

Meanwhile, Akshay Rao, Edelweiss Securities, said, ''We estimate development potential of the 350 acre land parcel to be 10msf. Cancellation of allotment of the land parcel is negative, both in terms of valuations as well as sentimentally. We estimate the impact on valuations to be Rs 28 billion or Rs 16/share on our current NAV/TP of Rs 246/share. We, however, believe the company is likely to appeal against the verdict in the Supreme Court. We currently have a 'Buy' on the stock.'

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