Not sure how many of you will believe this, but when the DLF scrip was quoting at Rs. 1200, I asked the research head of A BIG broking firm – whether it is worth buying.
He said ‘Sir based on MY accounting tolerance this share is worth Rs. 400 based on boss’s accounting tolerance and YOURS it is worth Rs. 200’ let us wait for the market to recognise this.
Vow kid, you hit the nail on the head – and this was almost 5 years ago. Kid, remember I told you talking to 2 intelligent people in the market is better than 2 months of research.
Today Veritas says the same things…and we hear that MCA has ordered a probe into their accounts.
I have seen the DLF report and had never been impressed. In the real estate sector Godrej is one builder that I am willing to look at, and I like the business model too. With other builders there is just NO visibility of ‘client stock’, ‘own stock’ etc. – see my post a couple of days back, we need a regulator.
The accounting norms are as usual too vague to be useful to the end user. It is more for academic discussion than serve anything useful for the reader of the balance sheet.
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