DLF hits a Sixer on IPL sponsorship buzz

DLF jumped 6.50% to Rs 868 at 12:00 IST on BSE, on reports the company has bagged the Indian Premier League title sponsorship rights for Rs 200 crore for five years with a first-year commitment of Rs 40 crore.

Meanwhile, BSE Sensex was up 703.76 points or 4.15% to 17,652.90, on strong cues from the global markets. Stocks rose across the globe as a surprise increase in US retail sales in January 2008 helped ease recession worries in the world's largest economy.

On BSE, 3.95 lakh shares were traded in the counter. The scrip had an average daily volume of 5.80 lakh shares in the past one quarter.

The stock hit a high of Rs 877 and a low of Rs 825 so far during the day. The stock had a 52-week high of Rs 1225 on 15 January 2008 and a 52-week low of Rs 505.60 on 5 July 2007.

The mid-cap scrip had underperformed the market over the past one month till 13 February 2008, declining 30.70% compared to the Sensex's decline of 16.31%. It had outperformed the market in the past one quarter, declining 13.84% compared to Sensex's decline of 14.33%.

The company's current equity is Rs 340.97 crore. Face value per share is Rs 5.

The current price of Rs 868 discounts its Q3 December 2007 annualized EPS of Rs 14.22, by a PE multiple of 61.04.

The deal has a five-year commitment and it can be renegotiated three years down the line, depending on Indian Premier League (IPL)'s performance.

DLF reported a net profit of Rs 605.84 crore on net sales of Rs 1676.51 crore in Q3 December 2007. Since the company was listed in July 2007, the comparable figures for corresponding previous year were not available.

DLF, the largest real-estate developer in India, develops residential, commercial and retail properties. In the residential realty space, the company builds and sells a wide range of properties including houses, duplexes and apartments of varying sizes, with focus on the higher end of the market.