Citi maintains sell on DLF stock despite pre-sales momentum and higher price target

Published 07/01/2025, 09:58
Citi maintains sell on DLF stock despite pre-sales momentum and higher price target

On Tuesday, Citi adjusted the price target for DLF (NS:DLF) Ltd (DLFU:IN), a leading real estate company, to INR775.00, up from INR750.00. Despite the increase, the Sell rating on the company's stock was maintained. CIti's analysis suggests that DLF is on track to report robust pre-sales figures for the third quarter, largely due to the launch of 'DLF Dahlias'. This performance is anticipated to affirm the company's pre-sales guidance for the fiscal year 2025.

DLF's stock has seen a downturn of approximately 5% over the past three months. However, the strong pre-sales are expected to reassure investors regarding the fiscal year 2025 guidance. Looking ahead, new project launches are planned for the second half of the fourth quarter, which are predicted to further secure the pre-sales outlook for fiscal year 2026.

The analyst's commentary indicates a short-term positive view on DLF's stock with the initiation of a 90-day positive Catalyst Watch (CW). This perspective is based on the company's potential to meet or exceed its pre-sales targets, bolstered by the upcoming property launches.

Citi's revised price target reflects a nuanced view of DLF's future performance, acknowledging the company's potential to achieve its sales targets while also expressing caution as evidenced by the Sell rating. The analyst's comments highlight the key drivers for the revised price target and the maintained rating, focusing on the company's sales momentum and forthcoming real estate launches.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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