DLF gives a glimpse of Vision 2030 strategy, aims to double PAT by FY30—Should you buy shares?
DLF Vision 2030, What to Expect From Haryana-based Property Developer's Project Launches: DLF shares are in focus as Dalal Street enters the F&O trading week. The company recently shared its Vision 2030, hopeful of securing surplus cash to the tune of Rs 25,000 crore through project launches. Read on to learn about DLF’s project pipeline.
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DLF Share Price, DLF Project Launch Expectations, DLF Vision 2030: DLF has taken centre stage on Dalal Street after the Haryana-headquartered private sector real estate developer unveiled key milestones it is targeting under its Vision 2030 strategy. On a call with analysts and investors after Friday’s market hours, DLF said that the group aims to double its net profit as well as cash flow by the financial year 2029-30.
DLF has also set a target to achieve net-zero debt on a group level by FY30.
Vision 2023 Strategy: DLF is targeting 2x net profit & 2x cash flow by FY30
Here are some of the key takeaways from DLF’s Vision 2023 strategy, as described on the call:
DLF is aiming to:
- Double its profit after tax (PAT) and cash flow by FY30
- Achieve pre-sales of Rs 20,000 crore in FY26
- Secure a gross margin of 45 per cent in its development business
- Achieve surplus cash of Rs 25,000 crore from launched projects
- Take annual rental income to Rs 10,000 crore by FY30
- Achieve a dividend payout ratio of 50 per cent
- Achieve upcoming projects to the tune of Rs 1.14 lakh crore
The realty developer has also laid out a capital expenditure (capex) plan of Rs 26,000 crore.
How do brokerages view DLF now? A summary of Nomura, Jefferies, Morgan Stanley, Antique’s ratings and targets
|
Brokerage |
Rating |
Target |
|
Nomura |
Neutral |
Rs 700 |
|
Antique |
Buy |
Reduced to Rs 863 from 1,014 |
|
Jefferies |
Buy |
Rs 1,000 |
|
Morgan Stanley |
Overweight |
Rs 910 |
According to Nomura, which has a ‘neutral’ rating assigned to DLF with a target price of Rs 700 per share, there is no surprise in the real estate company’s management commentary.
At the current valuation, the company’s long-term growth potential is priced in. Investors are disappointed with its conservative presales guidance for the financial year beginning April 1, according to Nomura.
At Rs 1,000 per share, the target price given by Jefferies suggests a 43.5 per cent potential upside in the real estate stock from its previous close.
DLF Share Price News
DLF shares rose as much as 2.6 per cent to Rs 715 apiece on BSE.
DLF shares have declined 13.6 per cent so far this year, underperforming a decline of half a per cent in the headline Nifty 50 index.
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