DLF shares rally 5% after strong Q3 performance. Should you invest?

DLF shares are in the spotlight on Monday, January 27, having surged 5% to an intraday high of Rs 731.40 on the BSE, following the company’s robust Q3 performance. The performance saw a 61% year-on-year (YoY) increase in consolidated net profit to Rs 1,059 crore, compared to Rs 657 crore in the same period last year.

The revenue from operations for the quarter stood at Rs 1,529 crore, a marginal gain over Rs 1,521 in the corresponding quarter of the previous financial year.

On a sequential basis, the profit after tax (PAT) fell 23% versus Rs 1,381 crore reported in Q2FY25 while the revenue witnessed a 20% drop against Rs 1,915 crore posted by the Gurugram-based realtor in the July-September quarter.


The company said that its new sales bookings stood at Rs 12,093 crore while its net cash position further improved to Rs 4,534 crore.

The new sales bookings for the first nine months of the fiscal year stood at Rs 19,187 crore. The operating cash surplus generated during the quarter was Rs 1,850 crore.

"Our development business continues its growth trajectory, delivering record new sales bookings of Rs 12,093 crore during the quarter. Our latest super luxury offering, The Dahlias in DLF 5, Gurugram, performed exceptionally well, garnering Rs 11,816 crore of new bookings in the opening quarter. The overwhelming response to our new offering has resulted in the company surpassing its annual guidance," the company statement read.

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Should you buy, sell, or hold DLF's stock? Here's what analysts say:

Jefferies

Jefferies maintained a 'Buy' rating on DLF with a target price of Rs 1,000, citing a strong Q3 performance.

Pre-sales exceeded estimates, driven by the highly successful launch of The Camellias on Golf Course Road. Cash collections also saw a significant surge, indicating robust demand. Meanwhile, the Profit and Loss (P&L) statement was broadly in line with expectations.

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CLSA

CLSA rated DLF as 'Outperform' with a target price of Rs 975, highlighting its stellar Q3 performance.

The company reported pre-sales above estimates, achieving the highest-ever quarterly sales by any developer in India. This milestone is particularly notable given the high ticket size of Rs 650-750 million per apartment, underscoring DLF's unmatched brand positioning in the NCR market. Moreover, DLF has already exceeded its FY25 pre-sales target, reflecting robust demand and strong execution.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)