Motilal Oswal's research report on DLF
DLF FY22 annual report highlights a) Target to deliver double digit growth in residential bookings in FY23 b) Aggressive expansion in office segment and aim to double retail portfolio in 4-5 years and c) Sustained improvement in cash flows. Housing segment continues to witness strong demand well supported by tailwinds from the fundamental demand drivers. Consolidation amongst larger and credible brands continues to be a key trend in the housing segment primarily driven by rising confidence towards developers will strong execution legacy. In FY22, DLF’s pre-sales increased 136% to INR72b driven by strong response to Camellias and new products (especially independent floors) and its identified launch pipeline will help it sustain the momentum. Company continue to maintain positive outlook for rental business and is consequently deploying capital to strengthen and grow the office portfolio (developing 5.3msf across Gurugram and Chennai). Given the recovery across the retail segment and consumption trends in our country, DLF has also initiated development of new set of malls across geographies with an aim to double retail presence in the next 4-5 years. In line with the growth plans, DLF has stepped up organizational capabilities by onboarding new function heads and has also strengthened project management and sales team to ensure strong execution.
Outlook
At current valuations, the surplus land in DLFU and DCCDL is valued at INR480b, which is in line with our estimated value, assuming a development timeline of 20 years for DLFU’s 151msf and 11 years for DCCDL’s 25msf, which is fair in our view. Maintain NEUTRAL with TP of INR385, implying an downside potential of 3%.
More Info
At 11:57 hrs DLF was quoting at Rs 395.85, up Rs 0.95, or 0.24 percent.
It has touched an intraday high of Rs 400.95 and an intraday low of Rs 395.10.
It was trading with volumes of 61,097 shares, compared to its thirty day average of 230,512 shares, a decrease of -73.50 percent.
In the previous trading session, the share closed down 0.92 percent or Rs 3.65 at Rs 394.90.
The share touched its 52-week high Rs 449.80 and 52-week low Rs 294.75 on 18 October, 2021 and 20 June, 2022, respectively.
Currently, it is trading 11.99 percent below its 52-week high and 34.3 percent above its 52-week low.
Market capitalisation stands at Rs 97,985.21 crore.
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