DLF (DLFU) delivered muted (down 69% YoY) pre-sales of INR692cr due to a lack of launches on account of delays in approvals and limited inventory in ongoing projects (INR2,061cr). With a spillover of launches, it has amassed a launch pipeline of 12mn sq. ft. for the rest of FY25, with a GDV of INR41,000cr.
Driven by a strong line-up and buoyant market dynamics, we are confident it will surpass its guided pre-sales of INR17,000cr in FY25. Beyond FY25, it has chalked out launches worth INR63,500cr (25mn sq. ft.), ensuring continuity in growth. Collections were stable YoY at INR2,370cr, with a 2% fall in operating cash flow to INR1,211cr.
Led by a robust OCF of ~INR5,273cr over the last 12 months and limited capex of ~INR1,879cr in new projects, net cash improved to INR2,832cr from INR141cr YoY. Revenue from its annuity portfolio under DCCDL grew 13% YoY to INR1,553cr on better rental rates and a 6% rise in the leasable area.
We are upbeat on DLFU’s growth story given its robust launch pipeline, favourable dynamics in its home turf, brand recall, improving annuity income, and market consolidation. We revise our TP to INR1,081 (earlier INR1,087). Maintain ‘BUY’.
Maintain ‘BUY’ with a SoTP-based TP of INR1,081
We remain upbeat on DLFU’s growth prospects on strong sectoral tailwinds (industry-wide consolidation, record low inventory in its home market, and greater preference for branded luxury inventory), an extensive launch pipeline, and expansion in its annuity portfolio. A strong Balance Sheet, with consistent cash flow, lends comfort. We revise our TP to INR1,081 (INR1,087 earlier). Maintain ‘BUY’.
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