DLF stock: Street will focus on deleveraging process, sale of inventory

While the stock is down 18 per cent from its peak earlier this year, analysts are positive on expectations of a gradual recovery

Realty major DLF, which is in the process of restructuring its operations, has placed a winning bid of Rs 15 billion for an 11.8-acre land parcel located next to Cyber City in Gurugram.

Factoring in other costs such as transit-oriented development and stamp duty, the company will incur nearly Rs 18 billion for a saleable area of 2.5 million square feet.

ICICI Securities’s Adhidhev Chattopadhyay said the land acquisition was value-accretive, given the expected realisation of Rs 20,000 per square feet, the development cost of Rs 12,000 per square feet, and operating profit margins of 40-50 per cent.

The company is expected to