Housing Development and Infrastructure Ltd (HDIL) is one of the niche real estate development companies in India, pursuing on development of real estate and slum rehabilitation projects in Mumbai Metropolitan region. HDIL had a debt-free balance sheet till FY’06. The problems for the company started when it acquired the rights to develop the land around Mumbai airport and to execute such a large project the company had to resort to a loan of ₹3,000-3,500 crore. The company has reduced the debt by ₹510 crore in FY14 and the same trend is expected to continue in FY15E as well. With multiple cash flow options, including divesting assets in various cities such as Hyderabad, Delhi, Kochi and a commercial property in Kurla, Mumbai, the company’s cash flow from existing bookings itself provide decent visibility. We are betting on the balance sheet recovery and expect that the debt figure should come down significantly on the back of multiple cash flow options.