Macquarie Capital Securities has maintained 'Outperform' on Housing Development and Infrastructure (HDIL) with revised target price to Rs 114 with upside potential of 13.4%.

Commenting on the investment rationale, "HDIL's net debt continues to fall with net debt declining by Rs 2 billion to Rs 29.5 billion at FY15-end. Strong customer cash flow collections have been helping the company in reducing the debt over the last two quarters. We are building in net debt of Rs 26.5 billion in FY16E (against the company’s guidance of Rs 25 billion).  HDIL is likely to generate ~2 million TDRs in FY16 (transferrable development rights) for the slum rehabilitation projects it is doing for the Slum Rehab Authority, Mumbai. Over the next two to three years, this slum rehab project could help generate ~7 million TDRs.

We marginally increase the TP by 10% to Rs114 to factor in FY16E debt in our NAV calculation (from FY15 debt earlier). We make minor revisions to FY16/17E EPS (~1%). We view the improvement in balance sheet (through reduction of debt) and focus on execution as steps in the right direction. Maintain Outperform."

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