Real estate giant DLF has received a high-conviction ‘Outperform’ rating from CLSA, with an upgraded target price of Rs 975, citing compelling valuations and a robust growth outlook. CLSA highlighted that DLF’s stock has shifted from trading at a 15% premium to its net asset value (NAV) to now trading at a 20% discount, offering an attractive entry point for investors.
Despite the correction in valuation, DLF’s presales (TTM) have continued to grow, reflecting sustained demand in the residential real estate sector. CLSA expects this growth momentum to persist, driven by adequate new launches over the next 8-9 quarters, a healthy unsold inventory pipeline, and strong business moats. Furthermore, the company’s robust balance sheet and strong rental income provide downside protection, while healthy cash flows offer further growth flexibility.
