Nomura maintained a ‘neutral’ rating with a target price of Rs 700, flagging conservative pre-sales guidance and limited near-term triggers despite the company’s aggressive capex plans. Antique, however, reiterated a ‘buy’ rating, while trimming its target to Rs 863 from Rs 1,014, citing strong long-term rental growth visibility.
DLF’s stock has fallen 19.26% in the past one year, but has advanced over 6% in the last one week. At current levels, Nomura’s target implies a 2% downside, while Antique’s new target suggests a potential 21% upside.
The company, in a presentation to stock exchanges, said it plans to invest Rs 20,000 crore over the medium term to develop office and retail properties. The expansion will be routed through DLF Ltd and its joint venture DLF Cyber City Developers Ltd (DCCDL), which holds a significant chunk of the group’s rental assets.
DLF’s annuity business — including offices, retail, hospitality, and services — currently spans around 44 million square feet with occupancy levels of 93%. The portfolio is set to grow to 73 million square feet, the company said, leveraging its high-quality land bank, primarily in Gurgaon.
Nomura said DLF’s management held firm on its FY26 pre-sales target of over Rs 200 billion but noted slight investor disappointment over the conservative guidance. The medium-term launch pipeline remains unchanged at Rs 739 billion, with a Mumbai project worth Rs 35 billion deferred by a year to FY26.Antique flagged modest pre-sales growth but remained bullish on DLF’s rental business, expecting rental income to more than double from Rs 46.3 billion in FY24 to Rs 100 billion by FY30. The brokerage trimmed pre-sales estimates and lowered the EV/EBITDA multiple from 17x to 15x to factor in slower sales and a concentrated residential portfolio.DLF has completed more than 185 projects spanning 352 million square feet since inception and holds 220 million square feet of development potential across segments.
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