Unitech Share क्या कर पाएगी टर्नअराउंड? Unitech Share Price | Stocks To Buy

Summary

The video discusses the developments around Unitech, once a star company, now struggling due to financial mismanagement and fraud. The Enforcement Directorate is set to release assets worth ₹2,257 crore, potentially helping Unitech improve its working capital. Key projects in Noida, delayed due to legal and financial issues, are resuming construction, offering hope for homebuyers. The video highlights challenges Unitech faced, including debt and halted projects, and notes the recent improvement in its stock, though analysts remain cautious about the company’s long-term prospects.

Takeaways

• 🏢 Unitech was once a star company but later became categorized as a junk company.
• 💼 Enforcement Directorate (ED) is preparing to release Unitech's frozen assets worth ₹2577 crore, tied to promoter fund siphoning.
• 🏗️ The company's stalled projects in Noida are resuming, with the main focus on Sector 96, 97, and 98.
• 🏘️ Unitech plans to build 818 apartments in these sectors, with 638 already allocated to homebuyers.
• 🔨 Construction is set to begin again in October for Sector 113, which will provide homes for 1621 buyers.
• 📊 Despite poor financial performance, Unitech's stock has surged by over 1000% in 18 months, indicating a potential turnaround.
• 🏦 The company has significant debt, with a total of ₹7230 crore, including ₹440 crore in long-term debt and ₹7189 crore in short-term debt.
• 💸 Unitech's financial struggle continues, mainly due to stalled projects and high interest on debts.
• 🛠️ Noida Authority had blocked construction permits due to unpaid dues, but the Supreme Court's ruling has allowed project approval.
• 🔍 Analysts recommend avoiding Unitech stock due to its volatility, but acknowledge the company's recent developments and potential revenue opportunities.

Q & A

What is the main focus of the discussion in the script?

The discussion focuses on the current developments surrounding Unitech, a company that was once a star in the market but later faced significant challenges and financial issues. The script highlights recent updates, particularly about Unitech's real estate projects and financial situation.

Why was Unitech previously considered a star company, and what changed?

Unitech was once considered a star company due to its success and large-scale real estate projects. However, the company faced a downfall when its promoters were accused of fund siphoning, leading to legal issues, project delays, and financial struggles, which pushed the company towards insolvency.

What recent legal development is impacting Unitech's financial situation?

The Enforcement Directorate (ED) has released ₹2,257 crore worth of Unitech's assets that were frozen due to allegations of fund siphoning by the promoters. The Supreme Court's order is awaited, and once granted, these assets will be unfrozen, potentially aiding the company's working capital and ongoing projects.

What is the status of Unitech's stalled projects in Noida?

Several Unitech projects in Noida were stalled, but work has now resumed. Notably, in sectors 96, 97, and 98, 818 apartments are planned, and out of these, 638 are expected to be delivered to home buyers, with 180 available for sale. Additionally, work will soon start in Sector 113 and Sector 117, where many home buyers have been waiting for their homes.

What caused the delay in Unitech’s construction projects?

The delays were mainly due to Unitech's financial struggles and its inability to pay the Noida Authority, which resulted in the Authority withholding construction permits. The Supreme Court intervened and ordered the Noida Authority to approve the company’s redesigned project maps, allowing construction to resume.

How has Unitech's stock performed in recent times?

Despite the company's financial troubles, Unitech’s stock has shown a significant rise. In the last four trading sessions, the stock hit the upper circuit, and in the past 18 months, it has surged by over 1000%, rising from ₹0.10 in March 2023 to around ₹1 now.

What is Unitech's current financial situation?

Unitech is still facing serious financial difficulties. It has been incurring losses for the past 10 years. The company’s revenue for FY24 was ₹477 crore, but it reported a loss of ₹87 crore. Unitech also has a total debt of ₹7,230 crore, with short-term debt alone amounting to ₹7,189 crore.

What is the sentiment of analysts regarding Unitech stock?

The analysts on the panel do not recommend trading or investing in Unitech stock. They suggest avoiding it due to its speculative nature and the high risk involved, as many investors can get trapped in stocks like this, which are prone to frequent upper and lower circuits.

How did one of the panelists, Anshul, start his journey in stock market analysis?

Anshul shared that his journey into technical stock analysis began in 2005-2006, inspired by Manas, one of the panelists. After following Manas's recommendations, Anshul’s brokerage suffered when Manas switched firms, prompting him to study technical analysis more seriously.

Why was this particular update on Unitech shared with viewers?

The update on Unitech was shared in response to viewer queries about the company's current status and the reasons behind its stock movement. The intention was to provide clarity on the recent developments within the company without offering any buy or sell recommendations.