DLF Ltd.
ISIN: INE271C01023 • Market Cap: ₹1.65 Lakh Cr
The 5-Pillar Quality Audit for DLF Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (18.3%), Return on Capital Employed (6.1%), and equity compounding (9.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (1.7%) and 3Y PAT CAGR (-2.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 37.14 vs PEG of 2.16 and Dividend Yield of 1.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.1%, backed by 20.3% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Consistent Market Standing (Large Cap)
Established player in the Realty sector with an overall fundamental quality score of 62/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 6.1%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 1.7%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking DLF against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 62/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Realty Sector Peer Comparison
Compare DLF directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| DLF Ltd. (DLF)Current | 62/100 | ₹1.65 Lakh Cr | 37.14 | 6.1% | 0.00 | — |
| Lodha Developers Ltd. (LODHA) | 82/100 | ₹1.21 Lakh Cr | 29.21 | 18.2% | 0.44 | View |
| Phoenix Mills Ltd. (PHOENIXLTD) | 68/100 | ₹68,498 Cr | 53.51 | 10.3% | 0.45 | View |
| Prestige Estates Projects Ltd. (PRESTIGE) | 64/100 | ₹67,840 Cr | 59.57 | 13.8% | 0.92 | View |
| Godrej Properties Ltd. (GODREJPROP) | 69/100 | ₹60,093 Cr | 37.55 | 12.4% | 0.80 | View |
| Anant Raj Ltd. (ANANTRAJ) | 76/100 | ₹22,717 Cr | 39.26 | 10.4% | 0.10 | View |
Frequently Asked Questions: DLF Ltd.
Q:What is the 5-Pillar Fundamental Score for DLF Ltd. (DLF)?
DLF Ltd. has a RupeeTools Fundamental Score of 62/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (55/100), Financial Health (82/100), Growth (28/100), Valuation (63/100), and Ownership Quality (82/100).
Q:Is DLF fundamentally strong for long-term investment?
DLF currently holds a moderate quality rating of 62/100. While it operates in the Realty sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does DLF pass the Coffee Can Investing filter?
No. DLF does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does DLF compare against other Realty peers?
Within India's Realty sector, DLF trades at a P/E of 37.14 and generates an ROCE of 6.1%. Compare its 5-Pillar score of 62/100 against top sector peers like Lodha Developers Ltd. (82/100), Phoenix Mills Ltd. (68/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.