Share Trading Tips

CMP — Rs 362,

P/E — 24.9,

Industry P/E — 38.5 (Construction)
As per the stock exchange announcement, the income tax department had conducted a raid on HDIL office premises and promoters residences on 10 and 11 September 2009. During the course of raid, the company agreed to offer approximately Rs 350 crore as income to be booked in the remaining quarters of financial year 2009- 10. Income of Rs 350 crore as calculatedby the income tax department are based on initial entries in the books of accounts, mostly relating to current financial year (2009-10), which the company would have irrespectively booked during the current financial year on completion of transaction and taxes paid as per provisions of Income Tax Act, 1961. Further, the company clarified that “there is no undisclosed income tax evasion, levy of penalty, for any previous years or current year as reported in various newspaper and media. There will not be any substantial change to tax liability or revision in income booked of earlier accounting years.”

The raids were conducted on 10 and 11 September 2009, while the company submitted this clarification to the stock exchange on 14 September 2009.