Buy DLF; target of Rs 1002: Motilal Oswal

Motilal Oswal's research report on DLF

In 2QFY26, DLF reported bookings of INR43b, up 6x YoY and down 62% QoQ (55% above our est.). In 1HFY26, bookings stood at INR157.6b, up 2x YoY. This impressive performance was fueled by healthy sales from its maiden launch ‘The Westpark’ in Mumbai in 2Q, which contributed ~53% of sales. ~37% of sales came from Dahlias. Collections increased 13% YoY but declined 4% QoQ to INR27b (40% below estimate). Consequently, OCF rose 12% YoY but dipped 15% QoQ to INR14b. Net cash stood at INR77b vs. INR80b in 1QFY26.

Outlook

DLF’s business (Devco/DLF commercial) is valued at INR1,721b, wherein land contributes INR1,304b. DCCDL is valued at INR708b. GAV is at INR2,429b. After taking FY26E net cash of INR52b (incl. DCCDL) into consideration, NAV stands at INR2,481b. We reiterate our BUY rating with a TP of INR1,002.