Mehabe score: 3 G Factor: 4 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 5.
Description
DLF is primarily engaged in the business of colonisation and real estate development. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, to planning, execution, construction and marketing of projects.(Source : 201903 Annual Report Page No: 108)Site:DLF
Market Cap:
Rs 76,821 cr
Price:
310.0
Trading pe:
70.2x
Book-value:
139/share
Div yield:
0.65 %
Earning yield:
1.97%
Face-value:
2.00/share
52week high:
332.70
52week low:
134.50
Technical Analysis
Stock trades at 310.0, above its 50dma 277.78. It also trades above its 200dma 244.59. The stock remains bullish on techicals
The 52 week high is at 332.70 and the 52week low is at 134.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 28.99% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of -11.42% over past five years.
– has a low return on equity of 2.55% for last 3 years.
Competition
– The industry trades at a mean P/E of 41.7x. Phoenix Mills trades at the industry’s max P/E of 273.21x. DLF trades at a P/E of 70.2x
– Industry’s mean G-Factor is 3.3 while the mean Piotski score is 7.0. DLF has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 13.1%. The max 1- month return was given by Oberoi Realty: a return of 18.05 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1713.0 cr compared to Rs 1694.0 cr for period ended Mar 2020, a rise of 1.1%
Operating Profits reported at Rs 454.0 cr for period ended Mar 2021 vis-vis 317.0 for period ended Mar 2020 .
Operating Margins expanded 779.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.94 compared to Rs 1.82 for previous quarter ended Dec 2020 and Rs -7.51 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5414.0 cr for period ended Mar 2021 vis-vis sales of Rs 6083.0 cr for the period ended Mar 2020, a fall of 12.4%. The 3 year sales cagr stood at -6.9%.
Operating margins expanded to 26.0% for period ended Mar 2021 vis-vis 19.0% for period ended Mar 2020, expansion of 700.0 bps.
Net Profit reported at Rs 1094.0 cr for period ended Mar 2021 vis-vis sales of Rs -583.0 cr for the period ended Mar 2020, rising 153.3%.
Company reported a poor Net Profit CAGR of -37.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 106% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is 499% vis-vis a compounded profit growth of 50% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 17.39% vis-vis 18.28% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 5.45% vis-vis 4.97% for Dec 2020
Conclusion
– has delivered good profit growth of 28.99% CAGR over last 5 years – The company has delivered a poor sales growth of -11.42% over past five years.
– has a low return on equity of 2.55% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 277.78 and is trading at 310.0, thus bullish price action wise.
