The stock on Tuesday gained over 1% on the NSE to reach the day’s high of Rs 498.95.
On Friday, DLF reported a net profit of Rs 527 crore for Q1FY24 which was up from Rs 470 crore in the same period last year. Revenue from operations during the quarter, however, fell by a marginal 1% to Rs 1,423 crore in the June quarter. The same stood at Rs 1,441 crore a year ago.
This is what top brokerages recommended:
Jefferies: Buy | Target: Rs 570
Jefferies has a ‘Buy’ rating on DLF and a price target of Rs 570, raising it from an earlier target of Rs 510. It is a 15% upside over Monday’s closing price of Rs 493. Higher pricing estimates in Gurgaon, strong cash flow performance and roll forward are reasons why Jefferies raised the price target. “We appreciate the company’s attempted geographic expansion and a success here could help stock trade at a premium to NAVs as well,” it said in a note.
CLSA: Outperform | Target: Rs 547
CLSA has downgraded the stock to ‘Outperform’. The housing demand momentum continues with a strong new launch pipeline for H2. While demand for non-SEZ offices is strong, SEZ remains a concern. The company re-entered Mumbai with a new project acquisition, which is positive. CLSA said that it has lifted the target price mainly on account of the Mumbai project.
Nuvama: Buy | Target: Rs 593
Nuvama has recommended a ‘Buy’ on DLF and calls this stock as its top pick in the realty space. DLF clocked Rs 2,040 crore in pre-sales (flat YoY) in Q1FY24, largely from the liquidation of inventory in Camellias and ‘One Midtown’ (OMT) projects. “With the housing cycle turning, we expect the sales momentum to stay healthy. Launch trajectory (11 msf in FY24 worth Rs 19,700) would be a key trigger, in our view,” Nuvama said. The price has been revised upwards to Rs 593 from Rs 550, earlier.ICICI Securities: Add | Target: Rs 532
ICICI Securities has an ‘Add’ rating on the counter with a revised price target of Rs 532 against Rs 473 earlier. “While we retain our FY24/25E devco sales bookings and DCCDL rental income estimates, we roll forward to March 2024E NAV and arrive at a revised SoTP-based target price of Rs 532 and retain our ADD rating,” ICICI Securities said.
Key risks to its investment thesis are a slowdown in residential demand in the NCR region and the impact of work-from-home on the leasing business resulting in higher-than-expected vacancies and a decline in rentals.
Motilal Oswal: Neutral | Target: Rs 455
DLF reported bookings of Rs 2,040 crore, which was flat YoY and in line with Motilal’s estimates. It has revised the target price marginally (incorporating lower WACC due to lower RF rate) to Rs 455/share, indicating an 8% downside potential. “We reiterate our Neutral stance on the stock,” the brokerage said in a note.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)