DLF Share Price Target: DLF Ltd on Wednesday (May 13) reported its Q4 results with a 1.1 per cent decline in consolidated net profit to Rs 1,269 crore for the March quarter, citing lower income. The company has also declared a dividend for its shareholders. Here’s why the brokerage firm, Elara Capital, is bullish on realty stock but cuts the target price.
1. Stock down 35% in the past year, underperforming Nifty Realty Index by 8%; trading at around 40% discount to March 2027 estimated net asset value.
2. Core residential operating cashflow at Rs 78 billion in FY26, up 23% year on year; exit rentals at Rs 74 billion growing at 15% per annum since FY22.
4. Mumbai offers a large high-margin growth opportunity; absorption volumes priced above Rs 40,000 per square foot, around 4 times higher than Gurugram.
5. Annuity portfolio at around 50 million square feet operating at above 95% occupancy; FY27 rental income guidance at Rs 82 billion; medium-term target Rs 100 billion.
6. DevCo net cash at Rs 141 billion; fortress balance sheet not yet deployed for scaling residential pipeline beyond Gurugram, seen as a dampener.
7. Valued at around 1x March 2027 estimated net asset value on a sum-of-parts basis
DLF Ltd reported a 1.1 per cent decline in consolidated net profit to Rs 1,269 crore during the March quarter on lower income. Its net profit stood at Rs 1,282 crore in the year-ago period.
Total income also fell to Rs 2,093.82 crore in the fourth quarter of 2025-26 from Rs 3,347.77 crore in the corresponding period of the preceding year.
During FY26, the company’s profit rose to Rs 4,414.68 crore from Rs 4,366.82 crore in the preceding year.
Total income increased to Rs 9,816.04 crore last fiscal year from Rs 8,995.89 crore in the 2024-25 financial year.
The company, in its exchange filing, said, “Recommendation of dividend of Rs 8 per equity share of face value of Rs 2 for FY 2025-26, i.e. (400%), subject to approval of the shareholders.”
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
