Shares of DLF rallied nearly 13 per cent in intraday trade to hit record high of Rs 277.8 on the Bombay Stock Exchange on Tuesday amid strong volume. Analysts have turned bullish on realty stocks, such as Godrej Properties and DLF, citing demand revival and shifting consumer preferences in wake of COVID-19 pandemic.
Brokerage firm Jefferies has projected that residential sales may cross 2019 levels and prices will rise over 10 per cent over next two years. It expects inventory to fall to 8-year low by end of 2021. The brokerage firm has selected Godrej Properties and DLF as top picks in the real estate sector.
On Tuesday, DLF shares opened flat at Rs 247 and slipped into negative terrain to Rs 245.5 on the BSE. During the day's trade, the stock hit fresh 52-week high of Rs 277.8, up 12.46 per cent. The stock delivered a return of 142 per cent over the last nine months, from its 52-week low of Rs 114.50 as on March 25, 2020 to Rs 277.8 as of today. The market cap surged to Rs 66,462.12 crore. Meanwhile, the BSE benchmark Sensex was trading at 49,505, up 236 points or 0.48 per cent.
On the volume front, there was spurt in trade as 28.18 lakh shares changed hands over the counter as compared to two-week average volume of 9.78 lakh shares on the BSE.
On the National Stock Exchange, DLF shares were quoting at Rs 273, up 10.55 per cent, after opening lower at Rs 245.20 against the previous closing price of Rs 246.95.
Last month, DLF announced that it was buying a 51.8 per cent stake in Fairleaf, a joint venture company, for Rs 780 crore. DLF Cyber City Developers Limited (DCCDL), a material subsidiary of DLF, holds 48.2 per cent stake in Fairleaf Real Estate Private Limited. Fairleaf is a joint venture firm, with funds managed by US-based Hines, which owns and operates One Horizon Center, Gurugram.