DLF rises 3% post analysts meet; here's brokerage analysis on stock

DLF, an Indian real estate development company, shares jumped 2.6 percent in trade on Monday, March 24, 2025, logging an intraday high at ₹715 per share. The stock advanced after brokerages were upbeat about company's growth plan presented during its analysts' meet. 

 

Around 11:31 AM, DLF share price was up 1.59 per cent at ₹707.8 per share on BSE. In comparison, the BSE Sensex was up 1.18 per cent at 77,815.38. The market capitalisation of the company stood at ₹1,75,078.8 crore. The 52-week high of the stock was at ₹967 per share and the 52-week low was at ₹622.15 per share.

 

Broakerage's view on DLF post analysts meet:

Kotak Institutional Equities reckons that the Street’s concerns about a slowdown in real estate, especially in Gurgaon, may be overplayed and are sufficiently captured in the current market price. It has maintained a 'Buy' with a revised face value of ₹1,020 from ₹1,000 per share.

 

Further, in the brokerage's view, the land bank places DLF in an advantageous position, not only in terms of superior margins on low historical land cost but also superior cash generation (since the land is already paid).

 

Land bank refers to the company's portfolio of land holdings, which are undeveloped or underutilised and are intended for future development projects. 

 

"DLF is trading at an adjusted EV/Ebitda of 7x on FY2026E, with the residual value for 206 mn sq. ft of land bank at historical lows," the filing read. EV/Ebitda refers to enterprise value to Earnings before interest, taxes, depreciation, and amortisation.

 

According to Motilal Oswal's analysis, DLF has a strong portfolio of luxury residential projects that have received an extraordinary response at launches. 

 

Besides, the company enjoys a monopoly in Gurugram which is an emerging destination for uber-luxury residences and with pre-sales expected to clock a 20 per cent compound annual growth rate (CAGR) over FY24-27, coupled with healthy collections visibility, a large land bank to support long-term growth, a cash positive balance sheet, steadily growing rental income, and reducing debt, the brokerage has strong confident on DLF. 

 

Motilal Oswal has reiterated 'Buy' on DLF with a target price of ₹954 per share. 

 

Meanwhile, DLF remains a preferred bet of JM Financial in the real estate sector on the back of its steady growth in annuity business complimented by high margin residential segment having a high-quality land bank, and sufficient for growth over the next 20 years. The brokerage has iterated its 'Buy' call on DLf for a target of Rs 1,000 per share.

DLF analysts meet highlights: 

While a significant part of the future land bank is in the premium segment which has the lowest margins, management expects few projects to graduate to the luxury segment over the next few years 

• FY26E launches will be spread across Privana North (Sec 77), Golf Course Extension Road (Sec 61), Mumbai and Goa 
• The value accretion to the customers by a DLF product is at par or better than any other asset class 
• Since the launch, the pricing at Arbour and Privana has appreciated by ₹8,000 psf and ₹4,000 psf respectively 
• DLF does not wish to foray into mid-income or lower priced segments in a meaningful way as management expects the execution to be difficult with decent margins 
• Targeting to launch 3-5 new projects in the residential business in FY26 with a total Gross Development Value (GDV) of ₹20,000 crore.
• DCCDL currently not looking at a Reit listing, as restrictions related to distributions impact growth. In the current regime, Reits would need capital from investors for any major development or acquisition.

 

In the past one year, DLF shares have lost 20 per cent against Sensex's rise of 6 per cent.