Sun, May 19, 2024

DLF: DLF’s Q4 Strong, Positive Outlook; Brokerages Raise Targets

The DLF reported Robust Q4 result as Net Revenue increased to 47% as Rs.2135 cr and compared to Rs.1465 cr in the last quarter. Net Profit Jumped to 61% as Rs.921 cr and the company have the order book of Rs.36000 cr in FY 24-25. 6 Million Sqft in FY 24 and 11 Million Sqft area in FY 25 is planned by DLF Company in future plan.

DLF Market price is moving in box pattern and market has reached support area of the pattern

DLF Market price is moving in box pattern and market has reached support area of the pattern

Shares of the real estate giant DLF experienced a decline of over 2 percent on May 15, despite positive sentiments from brokerages and an increase in target prices, following the release of strong financial results for the quarter ending March 2024. Analysts remain optimistic about DLF’s prospects, attributing their confidence to the company’s substantial land reserves, which continue to offer growth visibility.

Moreover, DLF’s lean balance sheet and improving cash flow generation trajectory have contributed to the positive outlook. Additionally, the relatively limited competition in the National Capital Region (NCR) market has prompted brokerages to raise their target prices.

success goal

Despite this short-term decline, the stock has demonstrated significant growth over the past year, rallying by 76 percent, outpacing the benchmark Nifty 50 index, which rose by 21 percent during the same period.

The decrease in share price, despite strong Q4 results, positive management commentary, and bullish analyst views, is likely due to profit booking, as the stock has witnessed a rally of around 32 percent in the last six months.

On May 14, DLF reported a notable 61.5 percent increase in net profit for Q4FY24, amounting to Rs 921 crore. The company’s revenue for the quarter surged by nearly 47 percent year-on-year (YoY) to Rs 2,135 crore. For the full fiscal year, consolidated revenue reached Rs 6,958 crore.

DLF launched approximately 6 million square feet (msf) of new products during FY24, with strong absorption leading to the monetization of almost the entire inventory during the launch period. The company plans to introduce more than 11 msf of new products during FY25, targeting various markets including Gurugram, Mumbai, Goa, and Chandigarh Tri-city.

Analysts at Motilal Oswal anticipate an 8-10 percent compound annual growth rate (CAGR) in prices across DLF’s key markets, valuing the land at Rs 1.11 lakh crore. Despite this positive outlook, Motilal Oswal maintains a ‘neutral’ call on the stock, with a raised target price of Rs 850, citing limited upside potential in the current valuation.

Nuvama remains bullish on DLF, attributing its positive outlook to robust housing demand, a substantial launch pipeline for FY25, and the company’s premium brand and equity investment scarcity. Nuvama raised the target price on the stock to Rs 1,081, highlighting DLF as their top pick in the realty space.

However, analysts caution that DLF’s long-gestation land bank poses a key risk, as it could take over two decades to monetize. Additionally, the concentration of 60 percent of DLF’s total land bank in the NCR region and a limited presence outside the high-end/premium residential space may also pose challenges for scaling up operations.

CIPLA: Cipla Shares Surge 4% Amid Promoter Stake Sale and Block Deals

The CIPLA Owner sell 2.52% stake in its company share in the three Block deal process at the rate 2.04 cr shares. The value of stake sale is Rs.2637 cr, it is sale of Promoter family and Okasa pharma stake value.

CIPLA Market price is moving in Ascending channel and market has reached higher low area of the channel

CIPLA Market price is moving in Ascending channel and market has reached higher low area of the channel

On May 15, shares of Cipla surged by 4 percent in the opening trade session, driven by three significant block deals on the exchanges. These transactions involved the transfer of approximately 2.04 crore shares, constituting a 2.52 percent stake in the pharmaceutical company Cipla.

Although the parties involved in the transaction were not immediately disclosed, CNBC-Awaaz reported on May 14 that the promoter family and Okasa Pharma were exploring the possibility of divesting up to a 2.53 percent stake in Cipla. According to the report, the promoter family and Okasa Pharma aimed to generate Rs 2,637 crore from the stake sale.

Buy hold sell words

Furthermore, the block trade included a lock-in period of 90 days for the sellers, as revealed by the report. Based on Cipla’s latest shareholding data, the promoter family held a 33.47 percent stake in the company.

In a related development, the promoter family, known as the Hamieds, had previously divested an additional 2.5 percent stake through open market transactions in February 2020. Notably, the Cipla board comprises three members from the promoter family: chairman Yusuf Hamied, his younger brother MK Hamied, and his daughter Samina, all serving in non-executive roles.

Mankind Pharma: Mankind Pharma Surges 4.5% on Bharat Serum & Vaccines Acquisition Buzz

The Mankind Pharma is going to Acquire Bharat serum and Vaccine company at the rate of $2 Billion from the private equity firm Advent International. This is the positive for Mankind Pharma company and it shows expansion in the US from this Project.

MANKIND PHARMA LTD Market price is moving in Ascending channel and market has reached higher low area of the channel

MANKIND PHARMA LTD Market price is moving in Ascending channel and market has reached higher low area of the channel

On May 14, Mankind Pharma witnessed a significant surge of 4.5 percent in its share price following reports by CNBC-TV18 about the company’s intentions to acquire Bharat Serum & Vaccines from the private equity firm Advent International.

According to sources cited in the CNBC-TV18 report, Advent International, which currently holds a 100 percent stake in Bharat Serum & Vaccines, has been exploring options for an exit since February of the same year. Advent is reportedly seeking a valuation of $2 billion for its entire stake in the company.

Bharat Serum & Vaccines operates across diverse sectors such as women’s healthcare, assisted reproductive treatment, critical care, and emergency medicines.

Notably, Advent International initially acquired a 74 percent stake in Bharat Serum & Vaccines in November 2019, purchasing it from Orbimed Asia and Kotak PE for $500 million. Subsequently, in 2020, Advent acquired the remaining 26 percent stake, enabling an exit for the company’s former promoters.

Economy growth

Meanwhile, Mankind Pharma is slated to announce its quarterly earnings for January-March on May 15. Kotak Institutional Equities anticipates a 32.2 percent year-on-year growth in net profit for the March quarter, along with a 16 percent increase in revenue.

Kotak’s report indicates expectations of a 5 percent sequential growth in the over-the-counter business, with continued benefits from the US market opportunity for Mankind Pharma, albeit at a lower sequential rate. Furthermore, the brokerage forecasts an expansion in EBITDA margin of approximately 190 basis points to 22.2 percent in Q4, compared to 20.3 percent in the corresponding quarter of the previous year.


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