Stock to Buy: Motilal Oswal said that this stock will rise by 65%, gave a target of ₹974 with a buy rating.

News Topical, Digital Desk : Stock to Buy:  Shares of real estate company DLF Limited rose 1% on Tuesday, as brokerage firm Motilal Oswal Financial Services forecast a 65% upside for the stock. The brokerage has a 'BUY' rating on DLF and a target price of ₹974 per share.

Motilal Oswal said DLF's projections have been lowered based on the lack of new launches and no additional sales from the Dahlia project in the third quarter of fiscal 2026. However, the company has maintained annual pre-sales guidance of ₹20,000 crore to ₹22,000 crore. 

55%-60% bookings already complete
In a post-earnings analyst call, DLF management stated that 55%-60% of the inventory at its super-luxury residential project, 'The Dahlia', has been sold even before its formal launch. However, bookings for The Dahlia were temporarily halted in the third quarter due to design changes to comply with updated safety and building codes.

Sales resumed after approvals were received in early January, while margins remained intact despite a slight cost increase, the management said. Motilal Oswal estimates a monetization timeline of 12-13 years for DLF's remaining 150 million square feet land bank, which adequately incorporates development visibility. 

₹400 crore bookings DLF recorded bookings of ₹400 crore in the third quarter, a growth of 97% year-on-year and 90% quarter-on-quarter. This was 90% below analyst estimates, as sales were halted for the Dahlia redesign. The real estate firm's collections increased 52% year-on-year and 78% quarter-on-quarter to ₹4,800 crore, 15% above brokerage estimates. As a result, the brokerage said operating cash flow increased 2.2 times year-on-year and 2.9 times quarter-on-quarter to ₹4,020 crore. This resulted in zero gross debt. DLF's net cash reached ₹11,660 crore in the third quarter, up from ₹7,720 crore in the previous quarter. According to the brokerage, DLF's business is valued at ₹1.68 lakh crore, of which land contributes ₹1.22 lakh crore. Meanwhile, DLF Cyber ​​City Developers Limited (DCCDL) is valued at ₹70,800 crore. The gross annual value is ₹2.39 lakh crore. Considering the estimated net cash flow of ₹2,000 crore for FY26, the revised net asset value (NAV) stands at ₹2.41 lakh crore. Of the 25 analysts covering the stock, 23 have a 'buy' rating and two have a 'hold' rating. DLF shares closed 4.1% higher at ₹588 per share in the previous session. However, the stock has declined 14.6% in the past month.

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