The Gurugram’s residential volumes are weak but unsold inventory is trending down, says Axis Capital.
Shares of DLF rose 1.6 percent in the early trade on Wednesday after brokerage house Axis Capital maintained buy call on the stock with a target at Rs 241 per share.
Axis Capital believes that the FCF generation will allay cash flow pressure on company's residential business. The DevCo has already achieved positive operational cash flow in Q2FY19.
The valuation comfort comes from high contribution from the rental portfolio, while it expect double-digit growth in rentals over next 5 years to cushion to valuation.
The Gurugram’s residential volumes are weak but unsold inventory is trending down, it added.
At 09:22 hrs DLF was quoting at Rs 184.20, up Rs 2.70, or 1.49 percent on the BSE.For more market news, click here