On Monday the share price of the company rose by 1.6% to its intraday high of ₹771.35 per share from its previous close of ₹758.55 after the company MoU with Standard Chartered Bank, DB International, and Deutsche Investments.
In the exchange filing, DLF Ltd, through its subsidiary DLF Home Developers Limited (DHDL), has entered an agreement with Standard Chartered Bank, DB International, and Deutsche Investments to purchase defaulted, listed, secured bonds worth ₹600 crores.
The bonds are secured by 72.36 acres of land in Gurugram. Due to default, the Bond Trustee initiated SARFAESI proceedings, leading to auctions. The company’s subsidiary bid for a part, but it wasn’t accepted.
The company now plans to acquire rights to 29 acres of land in Gurugram with a development potential of 7.5 million sq ft, including the contested part, for ₹825 crores, aiming for strategic investment and exploring rights under the bonds documentation.
Looking at the financials of the company, net revenue increased by 1.7% YoY from 1,495 Q4FY23 to 1,521 Q4FY24 and the net profit of the company rose by 26% YoY from 518 Q4FY23 to 656 Q4FY24.
The large-cap company has a market capitalization of ₹1,90,000 crores. DLF Ltd has a low debt-to-equity ratio of 0.09, a return on equity of 5.47%, a return on capital employed of 4.61%, and a net profit margin of 35.6%.
The share price of the company rose by 117% in the last year and 48% in the last six months. For instance, if an investor invested ₹1 lakh the current value of the investment would be 2.17 Lakhs.
The promoter of the company owns 74%, the general public owns 5%, foreign institutional investors own 16%, and domestic institutional investors own 5%.
DLF Ltd, along with its subsidiaries, associates, and joint ventures, is involved in real estate development, which includes land identification and acquisition as well as project planning, execution, construction, and marketing.
Written by Sriram KV
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