DLF - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.8

📈 Positive

• 💰 Low debt-to-equity ratio of 0.05 ensures financial resilience and conservative capital structure.
• 📈 Quarterly PAT surged 325% (₹818 Cr. vs ₹40.3 Cr.), indicating strong earnings momentum.
• 📈 EPS of ₹9.85 supports improving profitability.
• 📈 MACD at 7.57 and RSI at 60.2 reflect bullish technical momentum.
• 📈 Trading near DMA50 and DMA200 (₹762 and ₹768), suggesting consolidation with potential breakout.

⚠️ Limitation

• 📉 Very high P/E of 83.3 vs industry average of 42.4 suggests significant overvaluation.
• 📉 PEG ratio of 12.4 indicates valuation is not supported by sustainable growth.
• 📉 ROCE (8.34%) and ROE (6.30%) are modest, reflecting limited capital efficiency.
• 📉 Dividend yield of 0.78% offers minimal passive income.
• 📉 Volume below 1-week average may signal short-term cooling in investor interest.

📰 Company Negative News

• 📉 FII holding declined by 0.52%, indicating reduced foreign investor confidence.
• 📉 Stock down 52.5% from 52-week high, reflecting prior volatility or sectoral pressure.

🌟 Company Positive News

• 📈 DII holding increased by 0.20%, showing domestic institutional support.
• 📈 Strong quarterly earnings highlight operational turnaround and improved cash flows.

🏢 Industry

• 🏢 DLF operates in the real estate and property development sector, benefiting from urbanization and housing demand.
• 📊 Industry P/E of 42.4 reflects moderate growth expectations and cyclical exposure to interest rates and policy reforms.

🧭 Conclusion

• 📌 Suggested entry zone: ₹735–₹755, near DMA levels and below recent highs for better margin of safety.
• 🕰️ Long-term holding viable for investors seeking exposure to premium real estate, but monitor valuation and return metrics.
• ⚖️ Watch for volume recovery and sustained earnings growth before aggressive accumulation.