Neutral DLF; target of Rs 440: Motilal Oswal

Motilal Oswal recommended Neutral rating on DLF with a target price of Rs 440 in its research report dated May 14, 2023.

Broker Research

May 16, 2023 / 15:41 IST

Neutral

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on DLF

DLFU reported record bookings of INR85b in 4QFY23, up three-fold YoY and about in line with our estimate of INR89b. The company had a successful launch at Sector 63, Gurugram (Arbour) with bookings of INR80b, but also reported cancellations worth INR1b at The Camellias, Gurugram. The company reported bookings of INR150b in FY23, doubling YoY, driven by major launches in Gurugram and Chandigarh Tri-city, which accounted for 80% of the overall sales. Overall company launched ~10msf of projects in FY23. DLFU plans to launch 11msf of projects in FY24 with a sales potential of INR197b. Along with INR73b of existing inventory, company will have INR270b of inventory to monetize in FY24. In FY23, DLFU clocked an inventory churn ratio of ~68% with a total inventory of ~INR221b and bookings of INR150b.

Outlook

We bake in the cash flows from revised project pipeline and roll forward our estimates, resulting in revised TP of INR440 (v/s INR415 earlier). Our monetization based land valuation method values DLF/DCCDL’s 147msf/25msf land at INR490b v/s the current implied value of INR485b, indicating a fair valuation with no upside potential.

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