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DLF Ltd

NSE: DLF BSE: 532868

613.35

(-3.52)%

Sun, 01 Feb 2026, 06:49 pm

Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
  • DLF's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • The company is paying a dividend however it is incurring a loss.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • DLF's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for DLF is expected to increase by more than 50% in 2 years time.
  • DLF's earnings are expected to grow significantly at over 20% yearly.
  • DLF's earnings growth is expected to exceed the India market average.
  • DLF's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • DLF is expected to become profitable in 1 year.
  • DLF is expected to become profitable in 3 years time.
  • DLF is expected to become profitable in 2 years.
  • An improvement in DLF's performance (ROE) is expected over the next 3 years.
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Cons

  • DLF is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Real Estate industry average.
  • DLF's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • DLF's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
  • DLF's revenue growth is positive but not above the India market average.

health

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Pros

  • DLF is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • DLF has been profitable on average in the past, therefore cash runway is not a concern.
  • DLF has been profitable on average in the past, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 4.5x debt.
  • DLF's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (83.2% vs 18.4% today).
  • DLF's level of debt (18.4%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Debt is not well covered by operating cash flow (5.1%, less than 20% of total debt).
  • DLF is making a loss, therefore interest payments are not well covered by earnings.
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the DLF board of directors is about average.
  • Rajeev's remuneration is about average for companies of similar size in India.
  • The tenure for the DLF management team is about average.
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Cons

  • Rajeev's compensation has increased whilst company is loss making.

past

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Pros

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    Cons

    • Unable to compare DLF's 1-year earnings growth to the 5-year average as it is not currently profitable.
    • DLF does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
    • DLF used its assets less efficiently than the IN Real Estate industry average last year based on Return on Assets.
    • It is difficult to establish if DLF improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
    • It is difficult to establish if DLF has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
    • Unable to compare DLF's 1-year growth to the IN Real Estate industry average as it is not currently profitable.

    value

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    Pros

    • 532868 outperformed the Real Estate industry which returned -24.3% over the past year.
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    Cons

    • DLF's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • DLF's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • DLF is overvalued based on assets compared to the IN Real Estate industry average.
    • DLF is loss making, we can't compare its value to the IN Real Estate industry average.
    • DLF is loss making, we can't compare the value of its earnings to the India market.
    • 532868 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:532868 is up 5.5% underperforming the Real Estate industry which returned 13.9% over the past month.
    • BSE:532868 is up 5.5% underperforming the market in India which returned 8% over the past month.

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