DLF Can Rally 37%, Projects Motilal Oswal, Maintaining 'Buy' — Here's Why

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Motilal Oswal Report

We attended DLF Ltd.’s Analyst Day, which included visits to several projects followed by a meeting with management. The company laid out its detailed future roadmap for both business segments—development and annuity—highlighting an incremental potential of 27msf due to its revised transii oriented development/transferable development rights potential.

Management is focused on sustainable and profitable growth, guided by a strong launch pipeline and underdevelopment annuity assets, along with a strategically located land bank. However, we have not considered the incremental potential for our calculations due to the revised TOD/TDR potential.

DLF has a strong portfolio of luxury residential projects that have received an extraordinary response at launches. Gurugram is emerging as a destination for uber-luxury residences, where DLF has an absolute monopoly. With pre-sales expected to clock a 20% CAGR over FY24-27, coupled with healthy collections visibility, a large land bank to support long-term growth, a cashpositive balance sheet, steadily growing rental income, and reducing debt, our confidence in DLF remains strong.

Reiterate Buy with a target price of Rs 954

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