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Indian real estate firm DLF reported a 26% jump in third-quarter profit on Wednesday, boosted by sustained residential demand in the country.

Consolidated net profit rose to 6.57 billion rupees ($79.1 million) in the quarter ended Dec. 31 from 5.19 billion rupees a year ago.

Revenue from operations rose nearly 2% to 15.21 billion rupees.

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KEY CONTEXT

Indian real estate developers have benefited from a surge in residential demand as homebuyers lapped up new apartments, unfazed by high borrowing rates. The growth has pushed the realty index higher by more than 81% last year, outpacing a 20% climb in benchmark Nifty 50 index.

Luxury properties are likely to see higher appreciation in value, analysts say, driving growth in the DLF's core market, the national capital region (NCR).

PEER COMPARISON

Valuation (next Estimates (next 12 Analysts' sentiment

12 months) months)

RIC PE EV/EBIT Revenue Profit Mean # of Stock to Div

DA growth growth rating* analysts price yield

target** (%)

DLF Ltd 54.70 64.69 19.84 28.37 Buy 15 1.06 0.54

Sobha Ltd 33.06 18.15 19.68 102.75 Buy 12 1.14 0.22

Macrotech 41.59 30.46 28.08 40.57 Buy 14 1.14 0.09

Developers Ltd

Prestige Estates 45.09 18.26 19.24 -8.93 Buy 16 1.05 0.13

Projects Ltd

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from Refinitiv

-- $1 = 83.1060 Indian rupees