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Nomura Reits Buy Rating on DLF with Rs 740 Target After Q2 Beat
M
Moneycontrol•19-10-2026, 13:09
Nomura Reits Buy Rating on DLF with Rs 740 Target After Q2 Beat
- •Nomura maintains a Buy rating and a target price of Rs 740 on DLF following strong second-quarter pre-sales of Rs 38 billion, which beat brokerage estimates of Rs 25 billion.
- •Pre-sales growth was primarily driven by the Aureva launch and strong sustenance sales in Dahlias, keeping the company on track to meet its FY27 pre-sales target of Rs 200 billion.
- •DLF reported a 10 percent year-on-year rise in profit after tax at Rs 13 billion, while revenue and EBITDA fell short of consensus expectations.
- •Nomura expects robust annual free cash flow generation of Rs 70-80 billion, which could enable DLF to materially increase shareholder returns from FY28 onwards.
- •Annuity income is projected to grow at a 12-13 percent compound annual growth rate over FY26-29, with gross rentals expected to surpass Rs 100 billion by FY30.
Key Questions Answered
Nomura has reiterated its 'Buy' rating on DLF and maintained its target price of Rs 740 after the company reported second-quarter FY27 pre-sales of Rs 38 billion, beating the brokerage's estimate of Rs 25 billion.
DLF's Q2 pre-sales were driven by the Aureva launch, which brought in Rs 19 billion, and robust sustenance sales in Dahlias totaling INR 18 billion.
DLF's estimates factor in major upcoming launches including Westpark in Mumbai with a gross development value of around Rs 30 billion in Q3, and Hamilton Court in Golf Course, NCR, with a GDV of about Rs 80 billion in Q4.
