Morgan Stanley has maintained an Equal-weight rating on DLF, with a target price of ₹910, indicating a potential upside of approximately 17% from the current market price of ₹777.70.
Key Highlights from Morgan Stanley’s Report
- Q2 Pre-Sales Miss: DLF’s Q2 FY25 pre-sales stood at ₹6.9 billion, below the expected ₹15 billion due to approval delays. However, the market is focused on the anticipated launch of the LUX5 project this quarter.
- FY25 Sales Target: DLF is confident in achieving its ₹170 billion sales target for FY25, driven by the LUX5 project in Q3 and an upcoming Mumbai project in Q4.
- Long-Term Sales Estimates: Morgan Stanley maintains its sales estimates of ₹200 billion for FY25 and ₹240 billion for FY26.
- High-Margin Project Contribution: The LUX5 project, with a 70% gross margin, is expected to keep development margins above 40%.
- Strong Rental EBITDA Growth: Q2 rental EBITDA from joint ventures grew 14% YoY and is projected to sustain double-digit annual growth due to project completions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.
