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When a company clocks Rs 21,000 crore in sales bookings in a year, investors take notice. When net profit rises 39 per cent, they cheer. But when the stock trades at nearly 76 times earnings, even the cheerleaders start doing the math.
That’s the story with DLF today. The country’s largest listed real estate player is having a great run, thanks to a luxury housing boom. But the market may have already priced in a lot of that optimism.
Let’s unpack what’s going on.
Q4 FY25 results snapshot
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Net profit | Rs 1,282 crore | Rs 921 crore | 39 per cent |
| Revenue from operations | Rs 3,128 crore | Rs 2,134 crore | 46 per cent |
| EPS | Rs 5.17 | Rs 3.72 | 39 per cent |
So, why the caution?
Because DLF’s stock is not cheap. As of June 6, 2025, it trades at Rs 874 with a trailing P/E of 75.8. That’s significantly above the Nifty Realty index average.
Moreover, the stock has nearly doubled in the last 12 months. A significant amount of future growth may already be reflected in the current price.
About the company
DLF Ltd is India’s biggest real estate developer by market cap. Headquartered in Gurugram, it’s been in business for over 75 years and builds residential, commercial and retail projects. Its recent success is driven by high-end housing in North India, particularly the National Capital Region (NCR).
Below is a table summarising its fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 2.16 lakh crore |
| ROE | 4.2 per cent |
| ROCE | 5.9 per cent |
| P/E ratio | 49.4 |
| P/B ratio | 5.1 |
| Dividend yield | 0.7 per cent |
| Book value | Rs 171.9 |
| EPS | Rs 25.1 |
Value Research Online ratings
- Overall: 2/5
- Quality: 7/10
- Growth: 7/10
- Valuation: 2/10
- Momentum: 4/10
The takeaway
DLF has momentum on its side, with strong execution, a premium brand and rising demand for luxury homes. However, the stretched valuation means there is limited margin for error. If growth slows or the real estate cycle turns, the stock could correct.
If you already hold the stock, you’re sitting pretty. If you’re thinking of entering now, be aware: it’s priced for perfection.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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