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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  1. Subra Sir, there’s one more stock in RE you’ll love – Ashiana Housing. Very very conservative accounting practices (almost to a fault even compared to other conservative non-RE companies). Do have a look at their ARs. I was introduced to this company by one of the most conservative value-investor I know.

  2. But DLF continues to spnsor IPL. Vijay Mallya(whose company is bankrupt) owns a IPL team. Whom are they cheating? Govt, public or themselves?

  3. Wish you had written this 3-4 years back :-(.

    Intelligent readers ( obviously not intelligent “investors”) like me would have done something about it :-).

  4. Subra Sir

    Reliance brands, DLF++, OMC’s, Airlines, IT Inc’s… are all out of the radar. So what should be in a common mans portfolio for a “long term” investment with much above 50% of the index mcaps of “shining India” dumped..
    Scary indeed. But still you reccomend invest in market. 🙂
    Thank God, I am only in MF after a sleepless year of experiments.

  5. Unitech situation is worse than this i had brought this during 2007 it was around 390 then, Now it is hovering around 20 to 28 no idea what to do now

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