Motilal Oswal neutral on DLF; target price Rs 425

Motilal Oswal has neutral call on DLF with a target price of Rs 425. The current market price of DLF is Rs 407.5. DLF, incorporated in the year 1963, is a Large Cap company (having a market cap of Rs 100893.71 Crore) operating in Real Estate sector.

DLF key Products/Revenue Segments include Property Development, Rental Income, Other Operating Revenue and Royalty Income for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1360.50 Crore, down -10.27 % from last quarter Total Income of Rs 1516.28 Crore and down -12.59 % from last year same quarter Total Income of Rs 1556.53 Crore. Company has reported net profit after tax of Rs 260.27 Crore in latest quarter.

The company’s top management includes Lt. Gen. (Retd.)Aditya Singh, Mr.Rajiv Krishan Luthra, Mr.Pramod Bhasin, Mr.Devinder Singh, Mr.Ashok Kumar Tyagi, Ms.Anushka Singh, Ms.Savitri Devi Singh, Mr.Rajiv Singh, Dr.K P Singh, Ms.Priya Paul, Mr.Vivek Mehra, Ms.Pia Singh, Mr.A S Minocha, Mr.Ved Kumar Jain. Company has S R Batliboi & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 248 Crore shares outstanding.

Investment Rationale
The brokerage raises its FY23E/FY24E pre-sales by 4%/22%, respectively, to incorporate higher realizations and anticipated stronger responses to new launches in FY24E. Also, it roll-forward the valuation for commercial assets to Sep’24E and incorporate higher blended rentals for the balance potential in Downtown Gurugram due to planned development of the 3-4msf mall.

Promoter/FII Holdings
Promoters held 74.95 per cent stake in the company as of 30-Sep-2022, while FIIs owned 16.13 per cent, DIIs 4.67 per cent.