Morgan Stanley has maintained its ‘Equal Weight’ rating on DLF with a target price of ₹910. The brokerage expects pre-sales to grow at a compounded annual rate of 10-12% during the ongoing real estate upcycle, underpinned by strong demand for high-end residential properties. EBITDA margins are projected to expand to 36-38%, compared to 20% in H1FY25 and 33% in FY24, showcasing operational efficiency.
DLF’s return on equity (ROE), which was 2.5% in FY21, has risen to 7.5% and is expected to achieve double-digit levels in the next three to four years. The company’s focus on luxury and premium real estate continues to be a key growth driver, supported by robust consumer demand in metropolitan areas. Additionally, DLF plans to maintain a 45% dividend payout ratio while achieving sustainable growth.
Morgan Stanley highlighted DLF’s prudent financial management and focus on delivering quality projects, which it believes will support long-term value creation for shareholders.
