DLF Limited

Real Estate — Real Estate - Development · NSE

₹675.00+₹4.50 (+0.67%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of DLF Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

DLF Limited, together with its subsidiaries, engages in the business of colonization and real estate development in India.

IndustryReal Estate - Development

SectorReal Estate

Employees4,310

Annual revenue₹7,838 Cr

How does it make money?

Turns over ₹7,838 Cr a year. Of every ₹100 of sales, about ₹56 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 4,310 employees supports ₹1.82 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.82 Cr

Who are its competitors?

The closest listed comparisons in its industry are GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.7%

What is the outlook?

17 analysts covering the stock expect revenue to grow about 111.6% and earnings to grow about 47.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+111.6%

Est. earnings growth+47.8%

Analysts17

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +38% while net margin moved +57% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+38%

Margin effect+57%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 36.6x already prices in growth
✓ P/E is 43% below its own historical median of 64.6x — cheap by its own standards

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

48/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

36.6x

3Y Median

64.6x

40 monthly readings · mean 63.4x · range 28.6x–109.6x

Sector Median

26.9x

median of 2 sector peers

🟢Current valuation is approximately 43% below its 3y median of 64.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 36% above the peer median of 26.9x.

vs. its own history

Cheap

64.6x median over 40 months · -43%

vs. sector peers

Expensive

26.9x median of 2 peers · +36%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

54.5x

PEG

1.24

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 35.4% to 39.1% over 3 years.
Debt is being paid down
Total debt is down 91% over 3 years.
Cash generation is improving
Free cash flow is up 169% over 3 years.
Return on equity is rising
ROE has improved from 5.4% to 9.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 35.4% to 39.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 91% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 43% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 36% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 11.3% CAGR
Latest reported year was -23.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 37%✓ 39.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹6,218 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1.67 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

36.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.44

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

6.3%

Weak

Low return on total capital employed

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

-23.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

10.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.19%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹6,833 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

26.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

0.7%

Weak

Assets generate little profit

Operating Margin

-1.2%

Weak

Thin margins leave little room for error

Net Margin

71.6%

Good

Strong bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

663.0 / 663.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,682 Cr	₹6,249 Cr	₹7,947 Cr	₹7,838 Cr	+11.3%
EBITDA	₹2,013 Cr	₹2,566 Cr	₹3,105 Cr	₹3,065 Cr	+15.0%
EBITDA Margin	35.4%	41.1%	39.1%	39.1%	—
PAT (Net Profit)	₹2,036 Cr	₹2,727 Cr	₹4,368 Cr	₹4,415 Cr	+29.4%
EPS	₹8.22	₹11.02	₹17.64	₹17.83	+29.4%
ROE	5.4%	6.9%	10.3%	9.7%	—
ROCE	4.4%	5.4%	5.6%	6.3%	—
Total Debt	₹3,334 Cr	₹4,834 Cr	₹4,103 Cr	₹306 Cr	-54.9%
Free Cash Flow	₹2,312 Cr	₹2,423 Cr	₹5,139 Cr	₹6,218 Cr	+39.1%

🟢 Revenue has grown at 11.3% a year over 3 years.

🟢 EBITDA has grown at 15.0% a year over 3 years.

🟢 EBITDA Margin has risen from 35.4% to 39.1% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 29.4% a year over 3 years.

🟢 EPS has grown at 29.4% a year over 3 years.

🟢 ROE has risen from 5.4% to 9.7% over 3 years (+4.3 pts).

🟢 ROCE has risen from 4.4% to 6.3% over 3 years (+2.0 pts).

🟢 Total Debt has shrunk at 54.9% a year over 3 years.

🟢 Free Cash Flow has grown at 39.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹74,875 Cr

Total Liabilities

₹29,401 Cr

Cash & Equivalents

₹299 Cr

Operating Cash Flow

₹6,347 Cr

Capex

-₹129 Cr

Shareholding (proxy)

Institutional Holding

14.1%

Insider Holding

74.1%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹8

Ex-Dividend Date

27 Jul 2026

Analyst Consensus

Recommendations

20 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹814.36

+20.6% vs CMP

Target Range

₹676 – ₹1,000

Peer Comparison

Company	P/E	ROE
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive4 mixed1 negative

DLF Q2 FY27 results: Net profit rises to ₹1,301 crore; revenue drops 23% YoY

Upstox, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

DLF shares dip 2% as Q1 revenue tumbles 53%, but Nomura and others maintain Buy. Here's why

The Economic Times, 04 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

DLF Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

DLF dips 3% after weak Q1; Nomura sees recovery in launches, eyes 11% gains

Business Standard, 04 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

DLF Limited Just Missed Revenue By 33%: Here's What Analysts Think Will Happen Next

Simply Wall Street, 06 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Double Downgrade: DLF Shares Slip After BofA Cuts Target Price, Rating On Slower Booking Growth

NDTV Profit, 06 AugAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Revenue growth is negative (-23.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑