CLSA has upgraded its rating on shares of DLF to ‘buy’ from ‘outperform’, however, the brokerage has slashed its target price on the stock to Rs 423 from Rs 470.

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At 1221 IST, shares of DLF were up 8 percent at Rs 346.50 on BSE. In comparison, the Nifty Realty index was up 4.4 percent.

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The brokerage firm pointed out that DLF’s operations are at their decade-best. Upside in the stock is three times of downside potential, CLSA said.

Presales are at a 10-year high with strong free cash flow generation and there is no leverage concern, the brokerage firm said.

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CLSA said that valuation implies a downside cap of 11 percent as compared to the upside potential of 32 percent in the base case.

The foreign brokerage firm has trimmed its FY23 revenue estimate by 2 percent and FY24 estimate by 5 percent.

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First Published:Feb 25, 2022 12:46 PM IST