India’s premier real estate developer, DLF Ltd, continues to solidify its leadership position with consistent operational strength, robust sales visibility, and a healthy project pipeline. In its latest report dated March 24, 2025, Motilal Oswal Financial Services reaffirmed a ‘Buy’ rating on the stock, raising the target price to Rs 1,100. The revised estimate stems from DLF’s strong launch pipeline in FY25 and expectations of sustained pre-sales growth, all while maintaining superior margin profiles and prudent balance sheet management. The company is riding on the momentum of strong market absorption, high-end product offerings, and disciplined capital deployment.

Strong FY25 Launch Pipeline Drives Sales Visibility

DLF is poised to launch projects worth Rs 48,500 crore in FY25, supported by nearly 19 million square feet of saleable area, including large projects in Gurugram, Chennai, and Panchkula.

This includes:

DLF Privana South (Gurugram): Rs 13,000 crore

DLF Midtown – Phase 2 (Delhi): Rs 8,000 crore

Panchkula – Phase 5: Rs 5,000 crore

Chennai (Residential): Rs 2,800 crore

The company has already launched Privana West (Gurugram) with a GDV (Gross Development Value) of Rs 7,300 crore and DLF Arbour Phase 2 (Rs 2,000 crore), with response exceeding expectations.

This launch cadence ensures revenue visibility well beyond FY26 and underscores the market’s appetite for premium, well-located inventory.

Margins Remain Stable; Project Mix Strategically Optimized

Despite a shift toward plotted developments in FY24, DLF has maintained margins in the 26–28% range. While plotted projects typically carry slightly lower margins, their faster execution and cash conversion cycles create liquidity advantages.

Going forward, the launch mix will tilt back toward apartment-led offerings, especially in high-demand urban clusters. This is expected to gradually lift blended margins toward the 30% range, especially with luxury and mid-income housing demand on the rise.

FY24 Sales Guidance Achieved; FY25 Likely to Outpace Forecasts

DLF had guided for Rs 15,000 crore in bookings for FY24, a figure it is on track to surpass, following the resounding success of its launches in H2FY24.

For FY25, Motilal Oswal projects pre-sales to exceed Rs 20,000 crore, driven by a strong start to the fiscal year and a well-timed launch calendar. Historical brand trust, project location, and post-sales service quality have all contributed to sustained demand momentum.

DLF Cyber City Developers (DCCDL) Delivers Stability Through Rentals

DLF’s rental arm, DCCDL, continues to offer steady income and valuation support. In 9MFY24, DCCDL reported revenue of Rs 3,700 crore, with EBITDA margins above 54%.

The business has nearly 3.5 million sq. ft. of new lease additions, with another 4.7 million sq. ft. under construction. Rental assets remain a core pillar of DLF’s long-term valuation, especially as Grade-A commercial demand picks up post-pandemic.

Valuation and Target Price: Upside Remains Compelling

Motilal Oswal values DLF’s business through a NAV-based SoTP (sum-of-the-parts) method:

DLF is currently trading at Rs 881, which implies an upside of over 25% from current levels. The stock is also supported by a strong pipeline of deliverables, low leverage, and sector tailwinds.

Balance Sheet Health: Leverage Under Control

As of the latest quarter, DLF’s net debt remains modest at Rs 57 crore, supported by positive operating cash flows and pre-sales advances.

The company’s conservative capital structure and focus on pre-funded launches reduces financial risk, even in a rising interest rate environment.

With DCCDL generating steady rental cash flows and the development business being largely self-funded, DLF’s balance sheet continues to reflect disciplined financial stewardship.

Stock Performance and Technical View

DLF has been on a strong upward trajectory over the past 12 months, and the chart structure reflects long-term strength. Recent consolidation between Rs 840 and Rs 885 suggests healthy base formation.

Key levels to watch:

• Support: Rs 840
• Immediate Resistance: Rs 910
• Breakout Level: Rs 950+

Technical indicators suggest momentum remains intact, and any dip toward Rs 850 may be viewed as an accumulation opportunity.

Bottomline: Visibility, Execution, and Demand Drive DLF’s Bullish Narrative

DLF’s roadmap for FY25 underscores its strategic clarity: monetizing core land parcels, enhancing product diversity, and optimizing launch timing. Coupled with a lean balance sheet and a steady rental portfolio, the business remains resilient to macro swings.

Motilal Oswal’s revised target of Rs 1,100 reflects confidence in execution, market demand, and superior capital allocation. Investors seeking exposure to India’s real estate resurgence will find DLF a compelling choice, particularly in a high-conviction, long-term portfolio.