DLF - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: DLF Ltd (DLF) Fundamental Rating: 3.9

🧾 Core Financials

Quarterly Profit Surge

PAT jump from ₹808 Cr to ₹1,282 Cr ➜ strong QoQ performance — indicates positive market cycle or asset monetization

Return Metrics

ROE: 11.4% ➜ healthy for a real estate player

ROCE: 6.51% ➜ weak — implies low capital efficiency

Debt Profile

Debt-to-equity: 0.10 ➜ excellent — low financial leverage enhances stability

Dividend Yield

0.75% ➜ decent income source but not high-yielding

📍 Insight: ROCE remains a pain point, but ROE and debt ratios suggest sound financial discipline.

💸 Valuation Snapshot

Metric Value Commentary

P/E Ratio 42.6 Above industry average (40.2) ➜ pricey

P/B Ratio ~4.65 (₹800 / ₹172) ➜ significant premium

PEG Ratio 1.03 Fair valuation based on growth potential

📌 Verdict: Rich valuation — implies baked-in optimism. PEG > 1 tempers near-term upside.

🏢 Business Model & Competitive Edge

Real Estate Giant

Focus: Residential & Commercial assets across India

Presence: Gurgaon, Delhi-NCR, Chennai, and more

Advantages

Strong land bank & execution track record

Branding power in luxury and mid-income housing

Premium office leasing via DLF Cyber City

Challenges

Regulatory compliance and zoning risks

Market cyclicality tied to interest rates and urban sentiment

📈 Ownership Trends

FII holding ↓ 0.29% ➜ foreign investors trimming exposure

DII holding ↑ 0.29% ➜ domestic funds still confident

📉 Technical Indicators

RSI: 39.4 ➜ near oversold — potential bounce area

MACD: -3.15 ➜ bearish trend — wait for reversal signals

Price below DMA 50 (₹813) ➜ short-term weakness

✅ Suggested Entry Zone: ₹740–₹765 🕰️ accumulate on dips or during consolidation phase — avoid chasing momentum

📅 Long-Term Investment View

🏗️ Ideal for

Investors bullish on Indian urban growth & real estate cycle

Those seeking market leaders with low debt risk

🔍 Monitor

New project launches & inventory turnover

Rental yields from commercial portfolios

Sector-wide sentiment post rate cuts or infra policy tailwinds

Let me know if you’d like to compare it to peers like Godrej Properties or Oberoi Realty. I can set up a head-to-head in seconds.

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