DLF Shares Rise After Strong Q3 Earnings and Promising Pipeline

Posted by : Yashpal Arora | Thu Jan 25 2024

DLF Shares Rise After Strong Q3 Earnings and Promising Pipeline

DLF Ltd. one of India’s leading real estate developers, has posted an impressive consolidated net profit growth of 26.6% year-on-year for the quarter ended December 2023.

The company’s net profit for the quarter stood at Rs 655.7 crore, which was primarily driven by robust operating margin performance and higher other income. Additionally, revenue from operations also increased by 1.8% year-on-year to Rs 1,521.3 crore.

What was the response of the market?

The market has responded positively to DLF’s strong performance, with DLF shares trading 1.53% higher on the National Stock Exchange (NSE) as of 9.20 am compared to the previous day’s closing price.

This is a significant achievement for DLF, which has been performing exceptionally well lately, achieving a 15-year high quarterly profit, an all-time high in pre-sales, and Rs 10 billion FCF generation in the third quarter.

Thoughts of analysts

Looking ahead, analysts are optimistic about DLF’s prospects, with both Jefferies and Morgan Stanley maintaining buy or overweight ratings on the stock. Jefferies has highlighted the strong project pipeline for FY25 and beyond, with Rs 789 billion worth of launches planned in the next 2-3 years.

They remain bullish on the stock with a target price of Rs 875, which implies a potential upside of 17%. Morgan Stanley, on the other hand, emphasized the doubling of the nine-month profit ending December 2023 and sees the momentum continuing for the medium term. They have a target price of Rs 770 per share.

Conclusion

Overall, DLF has delivered a robust third quarter with significant increases in both profit and revenue. It has an impressive project pipeline that promises a bright future filled with potential growth opportunities.

Financial analysts are optimistic about the company’s prospects, seeing significant upside in the near term. With its exceptional growth prospects and positive market sentiment, investors can look forward to a promising future for DLF.

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