DLF share price has had a stellar run so far this week, soaring close to 12% while the benchmark indices BSE Sensex and NSE Nifty 50 have gained just over 5%.
DLF share price has had a stellar run so far this week, soaring close to 12% while the benchmark indices BSE Sensex and NSE Nifty 50 have gained just over 5%. The up-move in DLF stock is backed by robust sales, new product launches, and strong leasing in commercial real estate. With this, analysts at Kotak Securities and ICICI Securities have upgraded the scrip to a ‘Buy’ rating, expecting more upside potential for the real estate company. On Thursday morning, as benchmark indices rallied, DLF stock price was up 3.48% to trade at Rs 350 per share.
Kotak Securities: Buy
Fair value: Rs 410
Analysts at Kotak Securities have upgraded the stock to ‘Buy’ rating from ‘Reduce’ earlier while keeping the fair value unchanged. The brokerage firm believes that the stock is now offering an attractive entry point. DLF reported record sales of Rs 20 billion in the third quarter of the fiscal year, with sales in the first nine months of this fiscal year at Rs 45.4 billion, surpassing the full-year targets. “Concerns on rising interest rates and inflation in construction cost are valid; however, healthy demand for both the development business as well as new leasing for the rental portfolio makes us constructive on the name,” said analysts. The fair value pinned implies a 17% upside.
ICICI Securities
Target price: Rs 434
Apart from the sales momentum seen by DLF, analysts at ICICI Securities said that with office re-openings and mall consumption picking up, they expect DCCDL’s rental EBITDA to grow from Rs 34 billion in FY22E to Rs 40.5 billion in FY23E. Between the next two fiscal years, residential sales are estimated to be over Rs 70 billion each year. The set target price suggests an upside of 24%.
IIFL Securities
Target price: Rs 430
DLF stock has gone through a strong correction so far this year, falling 20%. “DLF’s business outlook remains intact both across the residential and leasing segments; and it has planned strong scale up in its development portfolio largely through its own land bank, offering high visibility on growth and margins,” IIFL said. The brokerage firm believes after the correction in DLF stock, investors have an attractive entry point. The target price hints at an upside of 23%.