Buy DLF; target of Rs 273: Edelweiss

By Broker Research

Edelweiss' research report on DLF
DLF’s operations continue to improve as: a) It restarted sales from November 2017 (halted since May 2017 due to RERA uncertainties); net bookings stood at INR4.8bn and will translate into revenue in Q4FY18; b) Collections from these sales will aid cash flows going ahead; and c) Deleveraging process has started with the promoters infusing ~INR90bn funds; the company expects Devco to become net debt free by FY19 end post infusion of balance promoter funds/QIP, which will ease DLF’s access to and cost of capital.

Outlook

We anticipate gradual uptick in DLF’s operations in coming quarters. We expect the company to be a key beneficiary of ongoing consolidation in the sector and believe that its attractive rental portfolio and improving balance sheet will hold it in good stead going ahead. Maintain ‘BUY’ with TP of INR273.

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