Shares of DLF gained 1 percent to Rs 683 per share on December 21 in an otherwise subdued market after global brokerage firm Morgan Stanley shared an 'overweight' rating on the counter, with a target price of Rs 770 per share, implying an upside of 12 percent from current levels.
In the past month, the stock of this realty major has surged over 7 percent as against a 5 percent rise in the Nifty Realty index. Earlier, DLF shares hit a 52-week high of Rs 708 per share on December 15, 2023.
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Highlighting the rationale behind their 'overweight' call, analysts at Morgan Stanley said that the company could contribute around Rs 4,500 crore to Q3 pre-sales, assuming 50 percent of pre-sales is completed in December.
"We expect DLF to launch first 500 units of Arbour 2 or Privana South at Sector 177 on December 21. The project spans over 28 acres with average selling price of Rs 18,000 per square feet and potential sales of Rs 9,000 crore. It includes 7 towers with 1,113 units and 14 penthouses," the brokerage firm said.
In the first half of FY24 (H1FY24), DLF reported bookings of Rs 4,270 crore, flat on a year-on-year (YoY) basis due to the absence of any major launches except for a plotted project in Panipat and luxury floors in DLF city.
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However, analysts at Motilal Oswal expect the pre-sales to recover, driven by the launch of high-rise projects in Sector 77, New Gurugram and DLF 5, Gurugram, coupled with a tower launch in ONE Midtown, Delhi and the luxury floors in DLF city. The brokerage firm shared a 'neutral' rating in an earlier note, with a target price of Rs 650 per share.
"Based on the indicative launch pipeline, we expect DLF to clock Rs 15,500 crore of pre-sales in FY24, up 3 percent YoY," Motilal Oswal analysts underlined.
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