Diwali Picks 2024 : DLF Ltd For Target Rs.920.0 By Way2Wealth
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
* DLF, a leading real estate developer in India, boasts over seven decades of growth, customer satisfaction, and innovation. It has developed 178 projects covering more than 349 million square feet. With 220 million square feet of development potential and an annuity portfolio of 44 million square feet, DLF focuses on residential and commercial properties. The company has earned over 40 LEED Zero certifications from the US Green Building Council and received 20 Sword of Honour awards from the British Safety Council in 2023, the highest globally in a single year.
* The outlook for DLF's residential business remains robust, with steady performance in the development segment. However, new sales bookings for the quarter decreased to Rs.6.92bn due to delays in obtaining necessary approvals for new product launches. Recently, approvals were received for the super luxury project, The Dahlias, located in DLF 5, Gurugram. For the first half of the fiscal year, new sales bookings totaled Rs.70.94bn, keeping the company on track to meet its annual guidance. DLF's net cash position was strong at Rs.28.31bn at the end of the quarter, despite a higher dividend payout of Rs.12.38bn during this period. DLF Cyber City Developers Limited (DCCDL) reported a consolidated revenue of ?16.53bn for Q2FY25, reflecting a year-over-year growth of 13%. The consolidated profit for DCCDL was Rs.5.21bn, marking a healthy growth of 25% compared to Q2 FY24.
* The rental business is experiencing positive momentum and steady growth. In response to these encouraging trends, DLF has increased its capital expenditure commitments to enhance its rental portfolio. The company has begun developing subsequent phases of Downtown projects in Chennai and Gurugram, totaling approximately 11 million square feet, which includes a significant retail destination of around 2 million square feet in Gurugram. Ongoing projects such as Atrium Place in Gurugram and three retail malls are on track to begin generating rental income in the upcoming quarters. At CMP `777, the scrip is trading at a P/E of 48.8x FY26E.
Above views are of the author and not of the website kindly read disclaimer
