BofA-ML reiterates ‘buy’ on DLF
New-Delhi- With a target price of Rs. 300, the Bank of America Merrill Lynch has sustained its ‘Buy’ status on DLF BSE 3.70 percent.
As per a BofA-ML official, they have decided to reiterate ‘Buy’ on DLF based on the revised price objective of Rs. 300 with a 15 percent discount to net NAV of Rs. 353 along with 20 percent.
The key factor for this is the increase in sales value from Rs. 5,200 crore in the financial year 2012 to Rs. 7,900 crore in the financial year 2014 followed by new property launches in Gurgaon.
However, DLF has turned operationally cash-positive in the financial year 2014 when compared to the financial year of 2012. There has also been an improvement in the execution which is led by the third party outsourcing strategy.
The key beneficiary of string trends will be DLF in Gurgaon as 40 percent of its NAV is fetched from Gurgaon. Also the recent launches in Gurgaon have contributed to the estimate and competition.
With the current trend being continuous for the future launches, there will be an upside risk to our NAV estimate by about 6-8 percent.
Related Real Estate News
DLF share falling in Sensex
DLF against the CCI order
Image courtesy of m_bartosch at FreeDigitalPhotos.net
Bank of America Merrill Lynch, Bank of America Merrill Lynch(BoAML), Delhi NCR, DLFBSE 3.70 percent, financial year 2014, increase in sales value, New Delhi, properties in gurgaon, revised price objective
