⚠ 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: 3.6
| Stock Code | DLF | Market Cap | 1,51,955 Cr. | Current Price | 613 ₹ | High / Low | 888 ₹ |
| Stock P/E | 55.6 | Book Value | 117 ₹ | Dividend Yield | 0.98 % | ROCE | 8.34 % |
| ROE | 6.30 % | Face Value | 2.00 ₹ | DMA 50 | 676 ₹ | DMA 200 | 731 ₹ |
| Chg in FII Hold | -0.64 % | Chg in DII Hold | 0.57 % | PAT Qtr | 326 Cr. | PAT Prev Qtr | 818 Cr. |
| RSI | 36.3 | MACD | -20.4 | Volume | 37,18,869 | Avg Vol 1Wk | 58,68,237 |
| Low price | 587 ₹ | High price | 888 ₹ | PEG Ratio | 8.30 | Debt to equity | 0.05 |
| 52w Index | 8.87 % | Qtr Profit Var | 304 % | EPS | 11.7 ₹ | Industry PE | 30.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT fell sharply from 818 Cr. to 326 Cr., showing earnings volatility despite reported profit variation of 304% YoY.
- Profit Margins: ROE at 6.30% and ROCE at 8.34% are weak, reflecting modest efficiency.
- Debt Ratios: Debt-to-equity at 0.05 highlights a debt-light balance sheet.
- Cash Flows: Dividend yield of 0.98% provides limited shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 55.6 vs Industry PE of 30.2, indicating significant overvaluation.
- P/B Ratio: Current Price 613 ₹ / Book Value 117 ₹ ≈ 5.24, showing premium valuation.
- PEG Ratio: 8.30, suggesting growth is priced expensively.
- Intrinsic Value: Estimated fair value around 570–590 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- DLF is India’s largest real estate developer with strong presence in residential, commercial, and retail projects.
- Competitive advantage lies in scale, brand recognition, and extensive land bank.
- However, real estate is cyclical, and earnings volatility remains a challenge.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 570–590 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Suitable for long-term investors seeking exposure to real estate growth, but valuation and profit volatility require cautious entry.
✅ Positive
- Debt-light structure with debt-to-equity at 0.05.
- Strong brand recognition and leadership in real estate sector.
- DII holdings increased (+0.57%), showing domestic institutional support.
⚠️ Limitation
- High P/E ratio compared to industry average, indicating overvaluation.
- Weak ROE (6.30%) and ROCE (8.34%) highlight poor efficiency.
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
📉 Company Negative News
- Decline in FII holding (-0.64%) indicates reduced foreign investor confidence.
- Quarterly PAT dropped significantly, reflecting earnings pressure.
📈 Company Positive News
- DII holdings increased (+0.57%), showing domestic support.
- Debt-light balance sheet provides financial stability.
🏭 Industry
- Real estate industry PE at 30.2, lower than DLF’s 55.6, suggesting relative overvaluation.
- Industry growth supported by urbanization, housing demand, and commercial expansion.
🔎 Conclusion
- DLF is a market leader in real estate with strong brand and low debt.
- Valuation is stretched compared to industry peers, and earnings volatility is a concern.
- Best suited for long-term investors with cautious entry around 570–590 ₹; accumulation strategy recommended for exposure to India’s real estate growth story.
I can also expand on real estate demand cycles (residential vs. commercial) to show how they might impact DLF’s earnings trajectory if you’d like.