Morgan Stanley overweight on DLF; shares remain in the red, fall 3%
DLF plans to invest about Rs 1,700 crore to develop close to about 7 million sq ft of finished homes on its already developed plots in Gurgaon, New Gurgaon and Panchkula.
February 07, 2020 / 11:25 AM IST
Shares of DLF continued trading in the negative for the second consecutive day as they declined almost 3 percent in the morning trade on the BSE on February 7.
Shares of the realty major came under pressure even as the firm, on February 5, reported a 24 percent increase in consolidated net profit at Rs 414.01 crore for the quarter ended December despite fall in income.
Despite the fall in income, the company's net profit increased due to an exceptional gain of Rs 231 crore during the December quarter.
However, the total income fell 36 percent to Rs 1,533.34 crore in the third quarter of 2019-20 from Rs 2,405.89 crore in the corresponding period the previous year.
DLF plans to invest about Rs 1,700 crore to develop close to about 7 million sq ft of finished homes on its already developed plots in Gurgaon, New Gurgaon and Panchkula and start selling them within the next fiscal, top DLF officials told Moneycontrol.
The company intends investing close to Rs 1,700 crore towards developing the plots and offering finished homes spread across 7 million sq ft, they said.
Read more: DLF plans to invest Rs 1,700 crore to develop 7 mn sq ft of finished homes on plots
Foreign financial firm Morgan Stanley is overweight on the stock with a target at Rs 269.
"The company has completed stage two of DCCDL settlement and now spotlight should shift to core operations," Morgan Stanley said.
"Selling is finished and inventory, building new pipeline may be a new theme for few quarters," said Morgan Stanley.
Shares of DLF traded 1.42 percent down at Rs 242.70 on the BSE around 11:15 hours IST.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.