DLF Ltd shares gained momentum, rising 2.90% to trade at ₹826.70 as of 9:43 AM, following Morgan Stanley’s reaffirmation of an ‘Equal Weight’ rating on the stock with a target price of ₹910.
Key Highlights:
- Pre-Sales Growth: Morgan Stanley projects DLF’s pre-sales to grow at a compounded annual rate of 10-12%, driven by strong demand for luxury and high-end residential properties in metropolitan markets.
- EBITDA Margins Expansion: The brokerage expects margins to increase to 36-38%, a significant improvement from 20% in H1FY25 and 33% in FY24, reflecting operational efficiency.
- Return on Equity (ROE): DLF’s ROE, which improved from 2.5% in FY21 to 7.5%, is expected to reach double-digit levels within the next three to four years.
- Dividend Policy: The company aims to maintain a 45% dividend payout ratio while focusing on sustainable growth in the real estate upcycle.
Growth Drivers:
DLF’s strategic focus on luxury and premium real estate continues to yield results, with robust consumer demand underpinning its performance. The ongoing real estate upcycle provides additional support for the company’s growth trajectory.
