KRChoksey Research has recommended a buy rating on DLF with a target price of Rs 615 in its August 4, 2008 research report. "Sales grew 24% y-o-y to Rs 3,810.6 crore in Q1FY09. There was a 12% decline in q-o-q sales due to the seasonal effect as sales in Q1 are historically sluggish. Operating margins were lower by 1020 basis points y-o-y on account of revenue from middle income segment. Net Profit was Rs 1,864 crore, a growth of 23% y-o-y but 14% lower on a q-o-q basis."
"We believe DLF’s strong balance sheet and its robust business model makes it one of the best investments in Indian Real Estate. We recommend a BUY with a target price of Rs 615. At the target price the stock would be valued at 12.1x FY09E EPS of Rs 50.65, implying an upside potential of 19.4%," says KRChoksey's research report. |
