DLF - A Step Closer to your Dream Home

DLF Limited (Delhi Land & Finance) is a premier name in real estate companies in India. DLF for last six decades, has become synonymous with new urban lifestyle for premium homes, offices, and retail spaces and is today known as the largest commercial real estate developers in India. The company developed residential colonies in various places of Delhi. Shivaji Park was the first, Rajouri Garden, Krishna Nagar, South Extension, Greater Kailash, Kailash Colony, and Hauz Khas are all creations of DLF.

As per Delhi Development Act 1957, the local government took control of real estate development in Delhi and banned private real estate developers. The Company then started acquiring land at relatively low cost outside Delhi, in the district of Gurgaon , in the adjacent state of Haryana. The Company started to develop the DLF city project at Gurgaon in the mid of 1970s. Today, it has about 25 million sq ft of leased office space in Gurgaon, Hyderabad, Kolkata, Chandigarh and Chennai generating a rent of Rs. 1950 crore approximately.

 

Analysis of Q4 results

• Total income increases from 1953.69 crore in March 2015 to 2335.56 crore in March 2016.
• Operating profit increases from 712.88 crore in March 2015 to 882.88 crore in March 2016.
• Net profit increases from 141.49 crore in March 2015 to 149.24 crore in March 2016.

 

Present condition of the Company

Construction and Development

• In FY 2015, 1.46 msf net sales booking was Rs.2955 crore, which comes to 1.14 msf sales booking of Rs.3150 crore in FY 2016.
• GIC Transaction – Rs 1,990 crore
• Project completion FY 2015 was 13.45 msf, while in FY 2016 it stood 14.07 msf
• Projects under Construction : 31.8 msf vs 44 msf

 

Rent

Net New Leasing of 1.02 msf [ Lease expiry of 2.54 msf has got renewed at higher rate & hence Gross leasing is 3.56 msf ] during FY 2016 vs 1.45 msf [ Lease expiry of 1.39 msf & hence Gross leasing of 2.84 msf ] in FY 2015.

Success rate of 90% of 9-year renewals at marked-to-market rates.

Success rate of 80% of any mid-term renewals at marked-to-market rates.

Balance renewals could not be retained due to lack of available space or customers moving into their own property.

Projects under Construction of DLF: 1.7 msf in FY 2016 vs 1.96 msf in FY 2015.

The DLF share price is currently trading at Rs.126.50 with a PE ratio of 39.09 and book value of 153.44. The current market capitalization of the company is at 23001.48 crore.

The stock is among 75 Multibagger Stock for the current month recommended by Dynamic Levels. One can take position at this level and hold for long term with stop loss of Rs.100.

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