Wanted: A new spark for DLF stock
DLF Ltd, the poster boy of the post-pandemic K-shaped economic recovery, is on solid ground. In the September quarter (Q2FY24), pre-sales or bookings rose 9% year-on-year to ₹2,228 crore, with a majority of the bookings accruing from existing projects. There were no material new launches in Q2.
But the second half looks impressive, as a large part of DLF’s FY24 launch target of 11.2 million square feet (msf) with a sales potential of ₹19,710 crore, gets into execution. In this backdrop, the company could exceed its pre-sales guidance of ₹13,000 crore for FY24. “DLF holds a competitive advantage compared to other companies because of its extensive inventory and significant land holdings throughout Gurugram.
We expect DLF to receive strong response to its project launches in DLF 5 and New Gurugram," said an Antique Stock Broking report. Further, at ₹2,359 crore, cash collections in Q2 were the highest ever. Robust cash generation helped DLF achieve the much-awaited net cash positive status.
What’s more, the management has guided for ₹6,400-6,500 crore of collection in FY24. DLF plans to enter Mumbai through an SRA (Slum Rehabilitation Authority) project under the joint development agreement model. The project will have a total saleable area of 3.0-3.5msf in Andheri (West), of which the company plans to launch nearly 0.9msf in the next 9-12 months, the management said.
Given the elevated competitive intensity in Mumbai Metropolitan Region and challenges relating to SRA projects, investors would be better off tracking developments here. Sure, the sailing has been smooth on the residential portfolio, but the same cannot be said for its commercial segment. The demand for office spaces, which has been muted lately, is showing
. Read more on livemint.com
