DLF shares gain 4% as Q3 net profit rises 27%
DLF saw its share prices jump 3.8% in early trading today, after announcing a 26.6% year-over-year increase in consolidated net profit for the quarter ending December 2023. The impressive net profit of Rs. 655.7 crore was driven by robust operating margins and higher income. In Q3, the company's revenue from operations grew by 1.8% year-over-year, reaching Rs. 1,521.3 crore. At 10:45 am, DLF stocks were trading at Rs. 756.8, up 1.2% from yesterday.
DLF generated Rs. 10 billion in free cash flow
In Q3, DLF achieved a 15-year high in quarterly profit, record-breaking pre-sales, and generated Rs. 10 billion in free cash flow (FCF). FCF is the cash left after a company pays for its operating expenses and capital expenditures. DLF's updated project pipeline has no significant launches planned for the remainder of FY24. However, per Jefferies, the pipeline for FY25 and beyond has been significantly expanded, with Rs. 789 billion worth of launches scheduled over the next 2-3 years.
Brokerages maintain positive outlook on DLF's performance
Morgan Stanley continues to support DLF with 'overweight' rating and a target price of Rs. 770 per share, while Jefferies maintains its 'buy' rating and a price target of Rs. 875 per share, suggesting a potential upside of 17%. Jefferies stated that strong cashflow and sales performance is likely to continue for the medium term. A crucial factor to watch will be whether momentum can be sustained, as the FY25 pipeline is robust with Rs. 320 billion worth of launches.
