DLF shares trade flat despite posting better-than-estimated Q4 results; should you buy, sell or hold it?

DLF shares in early morning deals traded flat with a negative bias even as the company reported better-than-expected Q4FY24 results. 

At around 9:25 am, DLF shares traded lower by 0.2 per cent at Rs 836.75 apiece on the BSE, while at day’s high it scaled to Rs 852.35 per share.

On Monday, the country’s leading real estate developer reported a 62 per cent increase in its consolidated net profit to Rs 920.71 crore in the quarter ended March on higher income amid strong housing sales. In the corresponding period last year, the company’s net profit stood at Rs 570 crore.

Total income surged to Rs 2316.70 crore in the reporting quarter from Rs 1,575.70 crore in the corresponding period of the previous year, according to a regulatory filing.

During 2023-24 fiscal, the company's net profit increased to Rs 2,727.09 crore from Rs 2,035.83 crore in the preceding year. Total income grew to Rs 6,958.34 crore during the last fiscal from Rs 6,012.14 crore in the 2022-23 financial year.

The Indian real estate sector has witnessed growing demand for home ownership, especially in the luxury segment, which remains little affected by higher property prices, noted the Reuters report. 

DLF operates its residential properties primarily in the premium-luxury range.

Here’s what brokerages and analysts suggest on DLF stock post its Q4 performance

Global brokerage Jefferies has retained its ‘buy’ call on the counter with a target of Rs 895. With inventory exhausted & new launches slipping to 1Q, 4Q has been relatively subdued; nevertheless, Rs 730 crore worth land sale propped up P&L to a multi-year high, notes the brokerage. The project pipeline for FY25 is further scaled-up & at Rs 36,000 crore (4x YoY) implies a strong year ahead, it adds. 

Morgan Stanley, meanwhile maintains an equalweight call on the counter with a target price set at Rs 900, suggesting over 7 per cent potential upside.

DLF's share price performance

In the past year, shares of DLF have climbed 92.4 per cent, as against Nifty Realty's gain of 111 per cent during the same timeframe.