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What should investors do with DLF after Q4 results: buy, sell or hold?

The real estate player reported a consolidated profit of Rs 480.94 crore in the March 2021 quarter against a loss of Rs 1,857.76 crore in the year-ago period.

June 14, 2021 / 09:37 AM IST
 
 
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DLF share price shed 3 percent in the early trade on June 14 even after the real estate company reported a consolidated profit of Rs 480.94 crore in March 2021 quarter against a loss of Rs 1,857.76 crore in the year-ago period.

The company's consolidated revenue from operations grew by 1.1 percent year-on-year to Rs 1,712.57 crore, DLF said on June 11.

For FY21, the company's consolidated profit stood at Rs 1,093.61 crore against a loss of Rs 583.19 crore in the previous year. Consolidated revenue for the financial year declined 11 percent to Rs 5,414.06 crore from the previous year.

DLF sold residential properties worth Rs 3,084 crore in the last fiscal year, registering a growth of 24 percent from 2019-20 on better demand for completed and new inventories despite the pandemic.

Also Read - DLF posts Q4 profit at Rs 481 crore, FY21 net at Rs 1,093.61 crore

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Here is what brokerages have to say about the stock and the company after the March quarter earnings:

JPMorgan | Rating: Buy | Target: Rs 350

There was a rise in pre-sales with positive free cash, while office vacancy rise was offset was the retail comeback. The F21 results reinforce our view that the residential cycle has turned a corner. The guidance of a 30 percent growth in pre-sales in FY22 is a positive.

CLSA | Rating: Upgrade to buy from outperform | Target: Raised to Rs 350

The management maintains its pre-lockdown guidance of Rs 4,000 crore for FY22. The company expects vacancies to rise further by 1-2 percent in FY22.

It expects new leasing to pick up in FY23 and maintains its exit rental guidance of Rs 4,300-4,400 crore by March 2023.

Morgan Stanley | Rating: Overweight | Target: Rs 299

The company is focused on a new asset creation cycle. The company monetising its inventory and stabilising the balance sheet. Strong new sales and a lower net debt in the March quarter underlines these trends.

At 0921 hours, DLF was quoting at Rs 300.35, down Rs 9.60, or 3.10 percent on the BSE.

The share touched a 52-week high of Rs 332.60 on March 4, 2021 and a 52-week low of Rs 134.60 on July 27, 2020. It is trading 9.7 percent below its 52-week high and 123.14 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Jun 14, 2021 09:37 am

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