Nomura has maintained its ‘Neutral’ stance on DLF Ltd., setting a target price of ₹700, citing strong pre-sales momentum but a limited upside at current levels. The brokerage expects DLF’s pre-sales to grow by 16% YoY to over ₹200 billion in FY26, driven by strong demand in the NCR market and a growing annuity income stream.
Nomura’s target price is based on a sum-of-the-parts (SOTP) valuation, factoring in:
- DLF’s medium-term project pipeline worth ₹272 billion
- The company’s vast unutilized land bank, valued at ₹752 billion
- Rental assets in DLF Dev Co and DLF’s share in its rental arm, DCCDL, worth ₹436 billion
Key downside risks include a potential slowdown in the NCR market and weaker-than-expected NRI demand, while stronger-than-expected project launches or price appreciation could serve as upside triggers.
About DLF:
DLF is India’s largest publicly listed real estate developer, with a strong presence in residential, commercial, and retail segments. The company is known for premium and luxury developments across Delhi-NCR, Mumbai, and other major cities, making it one of India’s most valuable real estate brands.
