DLF is Delhi Land and Finance, a commercial, residential and retail real estate developer based out of New Delhi, India.
*Note: Prices that are specified below is based on INR
DLF Historical Share Price (NSE)
DLF has a market capitalisation of over Rs.37,000 crore.
Wealth and recent performanceDLF Q1 FY 2018-19 Results
- The real estate firm reported 56% rise in its consolidated net profit to stand at Rs.172.77 crore as against Rs.110.70 posted during the same period last fiscal.
- However, its total income dropped to Rs.1,657.67 crore during the said period compared to Rs.2,211.24 crore reported last year.
- Despite a decline in total income, the firm’s net profit inclined to stand at Rs.241.50 crore.
- The sales booking during the quarter stood at Rs.600 crore and the firm remains on track to achieve fresh sales booking in the range of Rs.2,000-Rs.2,250 crore in the current financial year.
- For the fiscal ending March 2018, the firm’s net profit rose more than six folds to stand at Rs.4,476 crore as compared to Rs.707.90 crore reported last fiscal. The significant rise was attributed to a one-time gain on account of a stake sale to an affiliate of Singapore-based GIC.
- Despite six-fold rise on net profit, DLF’s total income during the said fiscal declined by 14.28% to stand at Rs.7,663.71 crore as against Rs.8,940.51 crore reported during the 2016-17 fiscal.
- The real estate company achieved net sales of Rs.1,000 crore and reported to have completed projects of 8.6 million sq ft.
- DLF’s consolidated net profit inclined by 66% to stand at Rs.247.73 crore in the January-March quarter compared to Rs.149.14 crore posted during the same period last year.
- Its total income dropped to Rs.1,845.92 crore during the said period as against Rs.2,511.37 crore reported during Q4 FY 2016-17.
- The realty firm’s revenue from operations dropped to 38% to stand at Rs.1,377.60 crore compared to Rs.2,225.18 crore posted last fiscal during the same period.
- During the said quarter, the share of profit in associates and joint ventures of the firm stood at Rs.205.48 crore.
- According to the consolidated financial statement released by the company, the total income of the company for the third quarter of the fiscal year 2017–2018 was Rs.1,885.21 crore, which was an increase from the total income for the previous quarter.
- Compared to the third quarter results of the fiscal year 2016–2017, the results for 2017–2018 are lower. This is because the total income for the third quarter in 2016–2017 was Rs.2,177.90 crore.
- The total expenses of the company have increased from Rs.1,743.86 crore in the second quarter of the fiscal year 2017–2018 to Rs.2,026.91 in the third quarter of 2017–2018.
- The total expenses of the company in the third quarter of 2017–2018 was a slight increase from the total expenses for the corresponding period the previous year which was Rs.2,000.77.
- The company also invested Rs.1,500 crore in DLF Home Developers Limited and Rs.400.34 crore in DLF Utilities Limited.
Stock trend in 2018
- In January 2018, DLF’s stock opened at over Rs.250.
- Over the course of the month, the stock achieved a peak of over Rs.270. After this, the stock steadily dropped until it ended the month again at Rs.250.
- The stock dropped steeply in the first couple of days in February to reach a low of just over Rs.223.
- The peak in February was Rs.233. The stock price reduced after the peak, and did not rise over Rs.230 after that for the rest of the month. Throughout February 2018, the stock remained over Rs.220. At one point though, the stock briefly dipped below Rs.220 to touch Rs.219 but it gained again after that to maintain a rate of over Rs.220.
- The stock continued to fall below Rs.220 a week into March 2018.
- On the 2nd of April, the stock lost 2 points to end the day at Rs.201 and by the end of the month, it rose to touch Rs.223.10.
- When the market opened for trading on the 2nd of May, the scrip lost more than 8 points to end at Rs.215.85 and dropped significantly to stand at Rs.193.55 on the 21st before inclining to end the month at Rs.209.90.
- The scrip lost about 3 points to end at Rs.206.95 on the 1st of June and remained steady over the course of the month before declining considerably to close at Rs.188.80 on the last day of the month.
- DLF share price on the 2nd of July stood at Rs.184.20, down by nearly 4 points, and dropped further with the stock valued at Rs.169.85 on the 19th; however, it recovered to end the month at Rs.196.30.
- On the 1st of August, the scrip ended the day’s trading at Rs.193.35 and by the end of the month, the scrip rose sharply to end at Rs.220.80.
- The stock opened at around Rs.118 in January 2016. Throughout January 2016, the stock price fell. The lowest price recorded for the month was about Rs.91 after which the stock gained again. But at the end of the month, the stock price was about Rs.96 which was a slightly steep decrease from the price the share opened at. After this, the stock continued to drop. In the second week of February 2016, the stock registered a low of Rs.80 which was the lowest the stock had been at any point in time for the past six weeks. There was a sudden gain after the low of Rs.80 and the stock went up to about Rs.89. This gain, however, did not last and the stock kept fluctuating between Rs.80 and Rs.90 for the rest of the month. By the end of February 2016, the stock price was about Rs.88. However, in March 2016, the stock opened at Rs.98 and the next day, it shot up to Rs.107. This was a steep increase in two days, from what the stock price was before. On the third day of March 2016, the stock price reduced by about a rupee to just over Rs.106 but, it rose to Rs.107 the very next day. Until about the last week of March the stock fluctuated only by about two to three rupees at a time. In the closing week of March, the stock again rose to Rs.114. Then, for the rest of the month the stock fluctuated by about Rs.10 but by the last day of March 2016, the stock had gained ground to achieve Rs.114.
- Thus, in summary, for the final quarter of the fiscal year 2015–2016, the stock price of DLF fluctuated quite a bit but the closing price for that quarter was only about Rs.4 less than the price it opened with.
- In the first quarter of the fiscal year 2016–2017, the stock opened at Rs.120 which was a gain of about Rs.6 from the previous day. Till around the end of the second week of April 2016, the stock did not go over Rs.120. After that, till the end of the month, the stock did not go below Rs.120. At the close of the month, the stock was almost Rs.130. In May 2016, the stock opened at Rs.128, for the rest of that month, the stock did not fluctuate by much. The lowest price of the stock for the month of May 2016 did not go below Rs.120 and the highest price for the stock did not exceed Rs.130. The stock opened at just over Rs.133 in June 2016. For the rest of the month, the stock gained steadily, without much of a steep increase. The stock price at the close of the month was about Rs.149. This was the highest the stock price had been from the beginning of the calendar year 2016.
- Therefore, it can be said that the stock gained throughout the first quarter of the fiscal year 2016–2017. The most stable period for the stock was in May, when it remained largely steady. The longest period of continuous gain appeared to be in the month of June 2016. The difference between the opening price for the first quarter and the closing price for the same period was about Rs.29, with the closing price higher than the opening price, indicating a steep increase.
- In July 2016, the stock spiked again and there was a steady increase with not much of a fluctuation. The price remained largely between Rs.150 and Rs.170. The lowest price was about Rs.152 and the highest price was close to Rs.164. There were no sudden increases or decreases in the stock price for that month. The stock opened at over Rs.160 for the month of August 2016. For the rest of the month, the stock hovered between Rs.154 and Rs.168. This month too did not have any large fluctuations with regard to stock prices. The stock closed at around Rs.154 at the end of the month and the opening price for September 2016 was Rs.148. This was a drop of about Rs.8 in a single day. But the stock appeared to be steady for the rest of the month, and the lowest price was about Rs.140. There were no further steep increases or decreases in that time.
- Thus, the stock held largely steady through the second quarter of the fiscal year 2016–2017. Most of the changes in the price were gradual.
- In October 2016, the stock price remained at or over Rs.150 except for two days when it dipped below Rs.150. But these were temporary, one-day changes. The stock recovered the next day each time. The highest price for October was about Rs.158. From the beginning of November 2016, the price dropped, at one point, dropping almost Rs.25 in a single day. The stock touched a low of Rs.108 for the month and did not recover much until December. The closing price for the month was about Rs.115. In December 2016, the stock fluctuated between Rs.105 and Rs.115. While this was a steadier performance, the price was still lower than the price the stock opened at in the beginning of the quarter.
- Thus, for the third quarter of the financial year 2016–2017, the stock price dropped by close to Rs.40. This was a major reduction in price for a quarter. But this was close to the price the stock opened at for the fiscal year 2016–2017.
- For the fourth quarter of the fiscal year 2016–2017, the stock opened at over Rs.118. This was not much of a gain over the price it closed at in the previous quarter. The whole month of January 2017 marked a period of steady price gains. The steady increase caused the stock price to end at close to Rs.135 at the end of the month. This was a solid gain over the course of the month. The stock opened at over Rs.143 in February, marking an increase of close to Rs.8 in a day. The stock continued to gain ending the month at just over Rs.150. There was exactly one day in which the stock dipped to Rs.137 but this was temporary and the stock gained again. The stock opened at over Rs.153 in March 2017, and saw a drop of almost Rs.13 the next day. This was then followed by a period of slow gain, with the stock ending the fiscal year 2016–2017 at over Rs.148.
- Thus, the stock gained almost Rs.30 over the fourth quarter of the fiscal year 2016–2017. This was a period of steady price gains.
- The stock opened at over Rs.146 in the new fiscal year (2017–2018). The stock gained solidly over the course of the month to end at Rs.186. While there was a shift of Rs.40 over the previous quarter, April 2017 marked a period in which the stock changed by Rs.40 over the course of a single month. The stock opened at Rs.186 in May 2017. Until about mid-May, the stock saw a steady increase that led to a high of over Rs.215 but after that the stock went on freefall to end the month with a price of Rs.179. The latter half of May saw a drastic drop in price compared to the steady gains in price until then. The stock opened at around Rs.176 in June 2017, and largely remained below Rs.180 until the second week of June. Then, there was a sudden gain of about Rs.9 in a day, followed by a period of slow but steady increase, with the prices topping out over Rs.190 at the end of the month.
- Thus, over the first quarter of the fiscal year 2017–2018, the stock gained close to Rs.44. This marked yet another period of steady gains for DLF.
- In July 2017, the price opened at Rs.194. This was followed by a period of steady growth until about the third week of the month at which point, the stock began to reduce in price. This was not a drastic reduction, it was more gradual. The highest the stock reached before the drop in price was about Rs.204. The price declined gradually in the latter two weeks of July 2017, closing at about Rs.193 at the end of the month. The price held steady for a couple of days in August 2017 before a steep drop that happened in the second week. The stock dropped to a low of Rs.155. This was a steep decline in prices but the stock recovered almost immediately, with prices increasing to over Rs.180 in a couple of days. The price fluctuated around Rs.180 to Rs.190 till the end of August. In September, the stock saw a solid increase in prices, with the price crossing Rs.190. A final 100% dividend was announced mid-month in September 2017. After the dividend announcement, the stock reduced in price until the end of the quarter, ending it at Rs.164.
- In October 2017, the stock gained steadily, ending the month at a high of Rs.201. There were no major fluctuations during the month. The stock gained about Rs.7 in a day, to begin November at Rs.208. The stock gained in price for the first week of November, then dropped in the second week, but the drop was not drastic. The lowest price for that period was Rs.202. The stock began gaining again after that, going up to Rs.227 in the third week and achieving a high of Rs.233 in the final days of the month. The stock fluctuated a bit more in December 2017, but it never went below Rs.220. It even touched a high of Rs.263 around the end of December.
- Thus, the third quarter of the fiscal year 2017–2018 was a good quarter in which the stock gained steadily.
Should one invest in DLF?
- DLF has a 70 year track record that is mostly positive, with good and sustainable growth patterns.
- DLF is poised to reduce its debt owing to its good financial performance in the third quarter of FY2018.
- DLF’s profit has climbed over the last quarter.
- In December 2017, promoters infused Rs.9,000 crore into DLF. This infusion of capital is expected to reduce debt and cut outflows.
- In November 2017, DLF sold Rs.300 crore worth of residential properties in Gurgaon.
- All of these points indicate the company’s tendency to perform well. Thus, investing in DLF stocks could provide one with potentially good returns.
- While a number of reasons can be given as to why one should invest in DLF stocks, it is better to perform personal searches that take into account personal disposable income and risk appetite.
DLF is a company that primarily deals in real estate, whether it be the development of residential, commercial or retail properties. It has a presence in 15 states and 24 cities in India. The company is involved in development of property of varying sizes, suited for various needs. Its development business takes care of activities ranging from land acquisition for development to final delivery of property to customers. It also has a successful lease business with a number of huge companies making use of DLF developed IT parks and SEZs.
The company was begun in 1946 by Mr. Chaudhary Raghvendra Singh. Within the next two decades, the company had developed 22 urban colonies in Delhi. In 1985, the company began working on DLF city Gurgaon. In 1996, the company entered group housing projects. In 1999, the company entered into the business of Grade A office spaces. The company began this in Gurgaon. With the birth of the new millennium, the company branched into retail space. Within the first decade of the new millennium, the company ramped up its focus with developments of IT parks, malls, premium residential townships that also contained golf links. After 2010, the company ventured into developing multi-level car parking facilities and expressways. It also developed an advanced destination mall spread out over a number of floors with space for about 330 brands. Thus, the company has been expanding from day one, with a focus on all kinds of real estate development projects.
The company was founded by Mr. Chaudhary Raghvendra Singh. The current chairman of the Board of DLF India Limited is Dr. Kushal Pal Singh who was instrumental in creating world-class infrastructure that provided the push that was needed to increase foreign direct investment (FDI) in India. This had the effect of resulting in the advent of the BPO phenomenon that thrives in India. The Vice Chairman is Mr. Rajiv Singh. Mr. Mohit Gujral is the CEO. Mr. Vivek Mehra is an independent director and there are ten non-executive directors.
DLF’s shares are traded on the BSE and the NSE.
BSE: 532868; NSE: DLFEQ; ISIN code: INE271C01023; Sector: Construction; Industry: Construction and contracting.
Other than these, the company is also listed on the MCX stock exchange.
DLF forms a part of indices like, the Nifty 100, Nifty LargeMidcap 250, S&P BSE 100, et cetera.
DLF LTD., DLF Gateway Tower, R Block, DLF City Phase – III, Gurugram – 122002, Haryana.
Tel : +91 124 4396000
DLF LTD., DLF Shopping Mall, 3rd floor Arjun Marg, DLF City Phase – I, Gurgaon - 122002
Tel : +91 124 4334200
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