DLF jumps 4% as Q3 show impresses brokerages with 27% rise in net profit

Jefferies has a price target of Rs 875 per share, implying a potential upside of 17 percent.

DLF shares gained 3.8 percent in early trade on January 25 after the real estate major recorded a 26.6 percent on-year growth in consolidated net profit for the quarter ended December 2023.

The profit came in at Rs 655.7 crore for the quarter, with healthy operating margin performance and higher other income. Revenue from operations increased 1.8 percent on-year to Rs 1,521.3 crore for the quarter.

As of 9.20am, shares of DLF were trading at Rs 758.8, higher by 1.53 percent on the NSE compared to the previous session’s closing price.

DLF saw a 15-year-high quarterly profit, all-time high pre-sales and Rs 10 billion FCF generation in the third quarter of the current fiscal year.

An updated project pipeline shows no significant launch expected in the rest of FY24. “The pipeline for FY25 and beyond has been significantly increased with Rs 789 billion worth of launches planned in 2-3 years,” said Jefferies. The FY25 pipeline itself is strong at Rs 320 billion worth of launches, which are likely high-end Gurgaon driven, added the brokerage.

Morgan Stanley maintained its 'overweight' call on the realty company, with a target price of Rs 770 per share. The nine-months ended December 2023 of the current fiscal year doubled, and a key monitorable to watch going forward, will be to see if the momentum can be sustained.

“Strong cashflow and sales performance of DLF is likely to continue for the medium term and we maintain our 'buy' rating,” said Jefferies, with a price target of Rs 875 per share, implying a potential upside of 17 percent.