DLF Ltd. share price target

Along expected lines, DLF clocked record FY23 devco sales bookings of Rs151bn driven by the stellar response to the Arbour residential project in Gurugram in Q4FY23 which contributed Rs80bn of sales bookings. Given the strong FY23 performance, the company has enhanced its launch pipeline to 41msf from 35msf and has given guidance of at least Rs110-120bn of sales bookings in FY24E which largely hinges on 3.5msf of Crest 2 luxury project launch in H2FY24 having estimated sales value of over Rs100bn.

DLF has launched its Sector 63, Gurugram project christened “The Arbour” in Feb’23 across 4.4msf having a total potential sale value of Rs80-90bn (company guidance was for 3.1msf of launches in Q4FY23). Our channel checks indicate significant buyer interest from customers for the project.

DLF reported one of its highest quarterly pre-sales of INR 2,507cr (up 24% YoY, up 22% QoQ) in Q3FY23 on the back of healthy launches and resilient demand.

DLF continues to see strong traction in its residential business with Q3FY23 sales bookings of Rs25.1bn (in line with I-sec estimate of Rs25bn) with Rs15.7bn of the quarter’s sales bookings coming from the fully sold Grove, Gurugram project (launched in last week of Sep’22) along with Panchkula (Rs5.4bn).

DLF continues to see strong traction in its residential business with Q2FY23 sales bookings of Rs20.5bn (flat QoQ) led by continued momentum in Camellias super luxury project

Resilient housing demand

Stellar Residential Performance

DLF has seen strong traction in its residential business with 9MFY22 sales bookings of Rs45.4bn driven by the Dec’21 launch of the One Midtown Delhi project. Accordingly, the company has revised its FY22E devco sales guidance to Rs60-65bn (earlier Rs40bn).

DLF reported strong performance in its residential business as new sales value doubled YoY driven by new launches and robust cash flow generation. This led to further reduction in net debt in its development (DevCo) arm. Sales traction remained intact despite 12% price hike taken at the portfolio level since beginning of the year and DLF further plans to take 10-12% price hike in its key projects (Camellias and the recently launched ONE-Midtown). DLF's commercial portfolio (DCCDL) performance remained stable with marginal increase in occupancy to 88% v/s 87% in 2QFY22. Rental...

Strong Residential performance continues

Best residential operating matrix in last 5 years