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CLSA cited compelling valuations and a strong growth outlook as the rationale behind the inclusion of DLF in its list.
CLSA wrote in its note that DLF has gone from trading at a consensus premium of 15% to the Net Asset Value to trading at a discount of 20% currently.
The brokerage has cited four factors based on which DLF’s growth momentum is likely to continue. They include:
- Adequate new launches over the next 8-9 quarters
- Unsold inventory
- Strong business moat
- and a healthy balance sheet
Strong rentals, healthy cashflow and balance sheet offer downside cushion, CLSA wrote in its noteAfter hitting a record high of ₹967.60 in January last year, the stock of Gurgaon-based real estate developer had lost as much as 28% in the following six months to hit a low of ₹687.05 in June last year.
Earlier, brokerages like JM Financial and ICICI Direct initiated coverage on DLF.
DLF has a strong land bank having a development potential of 192 million square feet with Gurgaon alone accounting about 60% of the land parcel.
Shares of DLF are off opening highs but are trading 1.3% higher at ₹773.55. The stock is down 7.5% so far this year, while the Nifty Realty index is down 11% during the same period. DLF is the highest weighted stock on the Nifty Realty index, gaining 14% and 94% respectively in 2024 and 2023 respectively.
(Edited by : Fatacia on the wall)
First Published: Feb 6, 2025 8:45 am IS
