DLF may underperform on valuations, commercial portfolio concerns

Residential segment sales and outlook however remains robust

Despite a better than expected performance in the March quarter, the stock of India’s largest listed developer shed over 3.5 per cent on Monday. While valuations, after a 21 per cent rise since the start of May, have factored in gains on the residential portfolio, concerns on the commercial portfolio were an additional cause for the correction. 

DLF Cyber City Developers or DCCDL, which is DLF’s rental arm and houses its office and retail portfolio, saw occupancies dip to 89 per cent as compared to 91 per cent in the December quarter. Given the uncertainty around the pandemic post the