Buy DLF; target of Rs 219: HDFC Securities

HDFC Securities' research report on DLF

DLF reported Revenue/EBITDA/APAT at Rs 16.1/4.6/3.3 bn, ~2x/3.7x/3.5x our estimates, on back of revenue recognition from Camellias (Rs 7.5bn). Presales rebounded to Rs 8.5bn vs Rs 1.5bn QoQ. Excluding the sale of AMEX commercial campus, sales bookings stood at Rs 4.7bn, a decline of 35% YoY. While office portfolio remains robust with +98% collections, retail is inching towards recovery with footfall at 35-40% of pre-pandemic level. Gradual recovery in presales, strong launch pipeline and REIT plans for DCCDL augur well for re-rating.

Outlook

We maintain BUY on DLF, with unchanged TP of Rs 219, given healthy balance sheet and change our FY21/FY22/FY23 EPS estimates by 3.5/-3.9/-16.3% to front load revenue from Camellias project.

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