This real estate stock turned into a multibagger in two years, can it hit four-digit mark?

Shares of real estate major DLF Ltd have delivered multibagger returns in two years. DLF stock which stood at Rs 382.05 on July 28, 2022 rose to Rs 868.70 mark in the current session, rising 127% during the period. Its benchmark index BSE 100 has surged 50.19% during the period.

In the current session, DLF stock gained 4.5% to Rs 868.70 on BSE. Market cap of the firm rose to Rs 2.14 lakh crore on BSE. The realty stock opened higher at Rs 832 against the previous close of Rs 829.60 on BSE. The share has gained 154% in three years and risen 383% in five years. In a year, the realty share has risen 68%.

In terms of technicals, the relative strength index (RSI) of the stock stands at 49.3, signaling it's trading neither in the overbought zone nor in the oversold zone. DLF shares have a beta of 1.4, indicating high volatility in a year. DLF shares are trading higher than 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

 Brokerage Nuvama has a bullish stance on the stock post Q1 earnings.

“Robust housing demand (refer to Real estate - Burning bright; hope for more) and a hefty launch pipeline should boost pre-sales. We believe launches would be a key trigger. Maintain ‘BUY’ with a revised price of Rs 1,087 (Rs 1,081 earlier) based on a rollover to Q1FY27E,” said Nuvama.

Motilal Oswal has a neutral stance on the stock with a price target of Rs 850 which is now achieved.

“DLF continued to enhance its growth visibility as it replenishes its launches with its existing vast land reserves. However, our assumption of a 12-13-year monetization timeline for its remaining 160msf of land bank (including TOD potential) adequately incorporates this growth. We estimate an 8-10% CAGR in prices across its key markets of Gurugram, New Gurugram, Delhi, and Chandigarh. Based on the above assumptions, we value the land at Rs 1,109 billion. The current valuation already implies Rs 1,060 billion of value for its land, indicating limited upside potential,” said the brokerage.

The real estate developer reported a 23 percent year-on-year (y-o-y) rise in its net profit at Rs 646 crore for the quarter ended June 30, 2024 against a net profit of Rs 526 crore in the year-ago period. In the March 2024 quarter, the company logged a net profit of Rs 920.71 crore.

Revenue fell 4.3 percent to Rs 1,362.4 crore in Q1 against Rs 1,423.23 crore reported in the year-ago period. In the previous quarter, the revenue stood at Rs 2,134.84 crore.