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Shares of real estate developer DLF Ltd rose as much as 1.5 per cent to Rs 207.45. Morgan Stanley has resumed coverage with “equalweight” rating and a price target of Rs 225, citing improved balance sheet after the company’s restructuring.
According to Morgan Stanley analysts, DLF now needs to provide a clear roadmap to unlock value in its large but concentrated land bank.
Although the company has significant value embedded in its land bank, monetisation is relatively slow and “markets appear unwilling to pay upfront for development plans spanning several decades’’, Morgan Stanley analysts wrote.
Strong sustained earnings/cash flows should be upside driver, while unresolved legal cases could hurt the sentiment, it said.
Five of 15 brokerages covering the stock rate it “buy” or higher, five “hold” and rest “sell” or lower; their median price target is Rs 225.
The shares were last up 1.3 per cent at Rs 206.85. The stock had shed over 21 per cent this year as of Friday's close after gaining nearly 133 per cent last year.
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