⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DLF - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | DLF | Market Cap | 1,39,173 Cr. | Current Price | 562 ₹ | High / Low | 888 ₹ |
| Stock P/E | 50.9 | Book Value | 117 ₹ | Dividend Yield | 1.07 % | ROCE | 8.34 % |
| ROE | 6.30 % | Face Value | 2.00 ₹ | DMA 50 | 620 ₹ | DMA 200 | 698 ₹ |
| Chg in FII Hold | -0.64 % | Chg in DII Hold | 0.57 % | PAT Qtr | 326 Cr. | PAT Prev Qtr | 818 Cr. |
| RSI | 40.0 | MACD | -23.9 | Volume | 50,14,538 | Avg Vol 1Wk | 52,11,215 |
| Low price | 525 ₹ | High price | 888 ₹ | PEG Ratio | 7.60 | Debt to equity | 0.05 |
| 52w Index | 10.4 % | Qtr Profit Var | 304 % | EPS | 11.7 ₹ | Industry PE | 25.5 |
📊 Core Financials
- Revenue Growth: PAT dropped sharply (₹326 Cr vs ₹818 Cr), showing volatility
- Profit Margins: EPS ₹11.7, modest profitability
- Debt Ratio: Very low (Debt-to-Equity 0.05)
- Cash Flows: Supported by stable real estate operations
- Return Metrics: ROCE 8.34%, ROE 6.30% — weak efficiency
💹 Valuation Indicators
- P/E Ratio: 50.9 (well above industry PE of 25.5, highly overvalued)
- P/B Ratio: ~4.8 (premium valuation)
- PEG Ratio: 7.60 (very high, growth priced expensively)
- Intrinsic Value: Current price ₹562 is near support (₹525), offering cautious entry
🏢 Business Model & Competitive Advantage
- India’s largest real estate developer with strong brand recognition
- Focus on luxury and premium residential projects
- Low debt enhances financial resilience
- Dividend yield of 1.07% adds shareholder value
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹540–₹580 range (near support levels)
- Long-Term Holding: Suitable for investors seeking exposure to real estate growth
- Risk: Weak ROE/ROCE and high valuation may limit upside
✅ Positive
- Low debt ensures strong financial stability
- Strong brand presence in real estate sector
- Dividend yield provides steady income
⚠️ Limitation
- P/E ratio significantly higher than industry average
- Weak ROE and ROCE compared to peers
- High PEG ratio indicates expensive growth
📰 Company Negative News
- PAT dropped from ₹818 Cr to ₹326 Cr, showing earnings pressure
- Decline in FII holdings (-0.64%) indicates reduced foreign investor confidence
🌟 Company Positive News
- DII holdings increased (+0.57%), showing domestic investor support
- Debt-to-equity ratio at 0.05, indicating strong balance sheet
🏦 Industry
- Real estate sector with cyclical demand
- Industry PE at 25.5, DLF trades far above this, showing premium valuation
- Sector growth supported by urbanization and housing demand
🔎 Conclusion
- DLF offers stability with low debt and strong brand presence
- Valuation is expensive compared to industry peers
- Entry near ₹540–₹580 is favorable for long-term conservative investors
- Best suited for portfolios seeking real estate exposure, but growth outlook remains limited