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DLF shares have potential to cross ₹1,000 — Here's why CLSA has a 'high conviction' on the stockOut of the 24 analysts that have coverage on the stock, 22 have a "buy" rating and two have a "hold" rating.By Shloka Badkar   July 1, 2025, 11:50:21 AM IST (Published)2 Min ReadShares of DLF Ltd. have the potential to rise over 22% from current levels, brokerage firm CLSA wrote in its note on Tuesday, July 1.

The brokerage has a "high conviction outperform" rating on the stock with a price target of ₹1,025 per share. The stock ended the previous session at ₹837.8 apiece.

CLSA said DLF has demonstrated high governance standards by remaining prudent on property prices with hikes, bringing calibrated supply to the market despite its projects getting sold out at launch, no equity dilution and consistently beating its guidance.

With strong pre-sales of ₹11,000 crore in its recent launch of Project DLF Privana North, CLSA said it believes the company will surpass its pre-sales guidance for the financial year 2026.

CLSA has raised the DLF's FY26-28 pre-sales estimates by 20-30%.

It believes DLF is better placed than its peers due to:

Higher operating cash flow (OCF) generation

Lower spend on new land for growth

A strong and growing rental portfolio

A net cash balance sheet

DLF reported a 36.3% increase in its March quarter net profit at ₹1,282.2 crore from ₹920.7 crore in the previous fiscal.

Its revenue from operations was up 46.5% at ₹3,127.6 crore from ₹2,134.8 crore in the March quarter of the previous year.

At the operating level, DLF's earnings before interest taxes depreciation and amortisation (EBITDA) increased 29.7% to ₹978.1 crore form ₹754.3 crore in the previous fiscal. Its EBITDA margin contracted to 31.3% from ₹35.3% in the year-ago period.

DLF recommended a dividend of ₹6 per equity share of face value ₹2 each for the financial year 2025, representing a 300% payout. The same is subject to approval by the shareholders at its upcoming annual general meeting.

Of the 24 analysts that have coverage on the stock, 22 have a "buy" rating and two have a "hold" rating.

Shares of DLF Ltd. were trading 0.44% up at ₹841.5 apiece at 11.15 am on Tuesday, July 1. The stock has gained 2% this year, so far.

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