DLF scales 52-week high, rises past Rs 500/share; should you buy, sell or hold real estate major's stock?

DLF shares scaled a fresh 52-week peak on Tuesday, continuing to rise for the third session in a row. The DLF stock gained by as much as Rs 14.4 or 2.9 per cent to Rs 504.7 apiece on BSE, before settling at Rs 504.6 apiece for the day.

DLF shares have grown 60.7 per cent in value in the past one year, sharply outpacing an 19 per cent rise in the benchmark Nifty index. The stock's return has also far exceeded a 33.2 per cent increase in the Nifty Realty, whose 10 constituents include DLF, Godrej Properties, Sobha, Macrotech and Oberoi Realty.

EDITOR'S TAKE | Anil Singhvi has a long-term 'buy' on DLF shares

Zee Business Managing Editor Anil Singhvi has a long-term 'buy' call on DLF. The market wizard has set a target price of Rs 800 for the stock — which implies a potential upside of 58.5 per cent from the latest 52-week high.

What's driving DLF shares higher?

Analysts say DLF is likely to benefit from steady growth in demand in real estate. 

"DLF's land bank is unmatchable, and spread all across the country, which makes it better positioned than its listed peers... The sector as a whole is poised for growth and cannot be ignored now," AK Prabhakar, Head of Research at IDBI Capital Markets, told Zeebiz.com. 

IDBI Capital has a 'buy' rating on DLF with a target price of Rs 530, which implies a potential upside of eight per cent from the previous close.

Prabhakar also likes Brigade, Prestige, Godrej Properties, Oberoi Realty and Kolte Patil from the space.

Three Indian cities in Knight Frank's Prime Global Cities Index 2023 

Growth in property prices came in at five per cent in Mumbai in the quarter ended March 2023 as against 3.1 per cent in the previous quarter, according to property consultant Knight Frank, whose Prime Global Cities Index includes three Indian cities: Mumbai, Bengaluru and New Delhi.  

The prices in New Delhi and Bengaluru increased 1.2 per cent and three per cent respectively, according to the index, which places Bengaluru at the 16th position in 2023 as against 37th the previous year.

New Delhi improved to the 22nd spot from 39th in the index in 2023, which aims to track the movement of prime residential prices across 46 cities worldwide using data from its global research network.

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