DLF with Rs 8,458 crore witnesses the highest booking in the fourth quarter of financial year 2022-23. Nearly 90 percent of these bookings are new projects. Collections soared to Rs 1,929 crore versus Rs 1,398 crore on a sequential basis, while net debt is lower at Rs 721 crore versus Rs 2,091 crore in same period.

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Revenue declined 6 percent year on year to Rs 1,456 crore, while earnings before interest, tax, depreciation and amortisation came in at Rs 399 crore, rising 8 percent year on year as margins increased 360bp to 27.4 percent. Net profits grew 40 percent year on year to Rs 570 crore, driven by a 57 percent increase in the share of joint venture’s profit.

The Company expects to launch 11msf of new projects with sales potential of Rs 19,700 crore and has guided for new bookings of Rs 11,000-Rs 12,000 crore for FY24. Motilal Oswal says at the current launch run-rate, DLF will take atleast 15-20 years to monetize its balance 146msf of land bank. Further the brokerage says DLF can match its FY23 sales run-rate, driven by a strong launch pipeline of 11msf across the luxury and value segment and hence increases FY24 and FY25 pre-sales estimates by 70 percent and 32 percent respectively. Motilal Oswal raises the target price to Rs 440 from Rs 415 earlier and now has a 'Neutral' rating on the stock.

Other brokerages are also positive on this realty player. CLSA has a 'Buy' call with target price of Rs 540. The presale guidance of Rs 11,000-Rs 12,000 crore for FY24 is conservative. CLSA has raised the presale estimates for FY24 and FY25 by 21 percent and 14 percent respectively.

JP Morgan with an 'overweight' rating and target price of Rs 510 says the company has now become a double engine business with both residential and office business generating free cash to fund its own growth.

The management highlighted that retail growth is expected to be robust in the country, given the rising consumption power of middle class diaspora. Organized retail growth is expected to be faster and will also be ahead of the growth expected in office portfolio.

Real estate stocks have had a dream run in CY2023. On a year to date basis, Nifty Realty index rose 5 percent, compared with less than 1 percent gain in Nifty 50. DLF is trading 2 percent higher in trade at 9:30am on Monday.

Also read: Expect robust volumes as well project price expansion in FY24: Godrej Properties