DLF shares up 8% after reporting 122% YoY jump in Q2 PAT. Should you invest?

In the quarter ended September 30, 2024, Rs. Shares of DLF rose 8% on Monday to Rs 1,381 crore after reporting a consolidated net profit of Rs. 839.55, touching an intra-day high of Rs. 623 crore compared to Rs.

This was a jump of 122% year-on-year.

Income from operations in the reported quarter stood at Rs. 1975 crore, compared to Rs. 46% more than 1,348.

On a sequential basis, the net profit in the reporting quarter was Rs. 646 crores was up by 114%. Meanwhile, operating income in the April-June quarter of FY25 stood at Rs. 1,362.35 crore was up 45% in Q2FY25.

Here’s how analysts viewed the second quarter results:

Nuwama: Buy | Target Price: Rs. 1,081

Nuwama paid Rs. 1,087 to Rs. A buy call was maintained on the stock with a slight cut to the target price of 1,081. Company in FY25E Rs. 41,000 crore GDV and Clock Rs. Expected to launch 12msf projects with pre-sales of Rs 17,000 crore. Super luxury The Dahlias project is nearing launch. Occupancy and rents at DCCDL remained healthy. Strong housing demand and strong launch pipeline should boost pre-sales. Nuwama believes the launch will be a major trigger.

Motilal Oswal: Buy | Target Price: Rs. 925

Motilal Oswal Rs. Upgraded the stock to ‘Buy’ with a revised target price of 925. DLF continues to increase its growth visibility as it repositions its launches with its existing large land reserves. However, Motilal’s 12-13-year monetization timeline assumption for its remaining 160msf land bank (including TOD potential) adequately accommodates this growth. A local brokerage firm has accelerated sales velocity for some projects and made mark-to-market changes to average price realizations, resulting in higher cash-flow generation as well as increased land value.

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HDFC Securities: Buy | Target Price: Rs. 988

HDFC Securities has revised its buy rating on DLF to Rs. 988 was maintained with an unchanged target price. DLF has invested Rs. 690 crore (-68%/89% YoY/QoQ) reported a slow quarter with presales, largely due to the absence of any new launches (delays in getting necessary approvals), a seasonally weak quarter and for FY25, management has guided for launches of 12msf, which Presales to accelerate momentum – The Dahlias, DLF 5, and Privana 3 — which will run presales in Q4FY25.

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