ÐLF shares rise over 5%, hits fresh 52-week high after Q4 results. Should you buy it?

Shares of realty major DLF rallied 5.4% and hit a fresh 52-week high at Rs 459.6 in Monday's trade on BSE after the firm reported a 41% rise in consolidated net profit to Rs 570 crore during the March quarter. It was Rs 405 crore in the same period last year.

However, its revenue from operations fell 6% to Rs 1,456 crore for the reporting quarter as against Rs 1,547 crore in the same quarter of the last year.

The company's EBITDA rose 8% to Rs 397 crore for the fourth quarter. Margins stood at 27.4% in the reporting period.

At 10.02 am, the scrip was trading 4.2% higher at Rs 454 on BSE. The stock has also risen nearly 40% in the last one year.

Should you buy, sell or hold DLF stock? Here's what analysts say:

Jefferies
Jefferies maintained a buy rating on DLF with a target price of Rs 510.

"Strong project pipeline and Gurgaon market activity drives our FY24/25 pre-sales estimates higher by 26%/34%. Earnings increased by 2%/3%. Higher pricing and demand makes us set PT at a 10% premium to NAV to Rs 510 (Rs435)," it said.

Nuvama Institutional Equities
Nuvama Institutional Equities maintained its buy call on DLF with a target price of Rs 550.

"With the housing cycle turning, we expect the sales momentum to stay healthy. Launch trajectory would be a key trigger in our view. The uptick in housing demand bodes well for DLF, and we believe DLF’s launches and pre-sales trajectory along with collections would be a key stock catalyst," it said.

Motilal Oswal
Motilal Oswal reiterated a neutral rating on DLF with a target price of Rs 440.

"We maintain our revenue estimates for FY24/FY25, but lower EBITDA by 20%/29% as we factor in higher overheads, on the back of increased project pipeline. We bake in the cash flows from the revised project pipeline and roll forward our estimates, resulting in revised TP of Rs 440 (v/s Rs 415 earlier)," Motilal said.

HDFC Securities
HDFC Securities maintained a buy rating on HDFC Securities with an increased target price of Rs 504.

For FY24, it expects to achieve at least Rs 110bn in presales backed by 11.2msf of launches with a sales potential of Rs 197bn. Of this, 5msf will be in the Luxury segment with 3.5msf in DLF Phase V and 1.5msf in Chennai.


"Given the strong pre-sales momentum supported by price hikes; robust launch plans; and an expected increase in office occupancy levels, we maintain buy on DLF," it said.

Kotak Institutional Equities
Kotak maintained its buy rating on DLF with a target price of Rs 490.

"The strong improvement in activity levels has led to cash generation of Rs 25 bn (up 14% YoY) in FY2023 and a reduction in net debt by Rs 19.6 bn. Accelerated monetization of the residual land bank could add incremental value to the company," it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)