DLF (DLF)
CyclicalFairStock Score: 58/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹665 |
| Market Cap | ₹1,64,608.23 Cr |
| P/E Ratio | 37.03 |
| ROCE | 6.51% |
| ROE | 10.1% |
| Dividend Yield | 1.2% |
| Profit Growth | 59.96% |
| Debt/Equity | 0.01 |
| Sales Growth | -21.38% |
| Free Cash Flow | ₹1,760 Cr |
| Promoter Holding | 74.08% |
| 52-Week Range | ₹489.4 — ₹794.8 |
| Sector | Realty |
| Book Value | ₹183.71 |
Strengths
- Clean balance sheet: D/E 0.04 and positive FCF of ₹1,760 Cr
- Piotroski F-Score 8/9 signals strong financial health
- Promoter holding of 74.08% aligns controlling owner with public shareholders
- Latest quarter robust: sales ₹2,020 Cr and net profit ₹1,203 Cr; sales growth 35.8%
Concerns
- No margin of safety: price ₹592.60 is far above Graham Number ₹263.05 and DCF value ₹380.69
- Expensive valuation: P/E 34.66, EV/EBITDA 58.67, PEG 8.39
- Mediocre capital returns: ROE 10.41%, ROCE 6.51%; Altman Z-Score 2.15 in caution zone
- Growth sustainability gap: latest 35.8% sales growth vs 5-year revenue CAGR of only 8.11%; dividend yield just 0.99%
AI Analysis
Putting my Graham/Buffett hat on, I begin with margin of safety. At ₹592.60, the market capitalisation is ₹1.49 lakh Cr. Book value is ₹171.90, so the stock trades at 3.45 times book. The Graham Number is ₹263.05 and the DCF value is ₹380.69; both are well below the current price. With a margin of safety of -129.56%, this is not a value purchase. The balance sheet, however, is healthy: debt/equity is only 0.04, free cash flow is ₹1,760 Cr, and the Piotroski F-Score of 8/9 suggests good financial discipline. Promoter holding of 74.08% keeps control aligned with public shareholders. The latest quarter looks strong, with sales of ₹2,020 Cr and net profit of ₹1,203 Cr, and reported sales growth of 35.8%. But I must compare that with the five-year revenue CAGR of only 8.11%. That gap tells me the recent surge may be cyclical, not a durable compounding trend. The valuation is rich: P/E 34.66, EV/EBITDA 58.67, and PEG 8.39. ROE of 10.41% and ROCE of 6.51% are moderate, not exceptional, and the Altman Z-Score of 2.15 sits in a caution zone. Dividend yield of 0.99% offers little comfort. FairStock calls it Steady at 61/100, but at this price I see an expensive cyclical, not a margin-of-safety investment. I would wait for a significantly lower price or evidence that the 35.8% sales growth persists before considering an entry.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer