Shares of realty major DLF climbed nearly 9.5 per cent to hit a 52-week high in the intraday trade on Wednesday after brokerage firm Jefferies in its latest research report suggested a ‘Buy’ on the stock.
The DLF stock surged 9.48 per cent earlier in the session to hit its 52-week high of Rs 292.90 per share on the BSE, while on the National Stock Exchange (NSE), it jumped 9.42 per cent to Rs 292.75 — its 52-week high on the bourse.
In the past two sessions, DLF shares have rallied 18.58 per cent on the BSE and 18.55 per cent on NSE after brokerage firm Jefferies India on Tuesday said that it expects a new residential cycle to become evident over 2021, as investors and end-users get back into action.
“We expect residential sales to cross 2019 levels, inventory to fall to 8-year low by end’21 and prices to rise by 10 per cent+ over next two years. Office demand could surprise in the second half if tech hiring remains strong. As we build in a new multi-year cycle kickoff, we raise estimates and PTs with Buys through our coverage,” the brokerage firm said in its report.
Godrej Properties and DLF are top picks in the sector of real estate, it said.
For DLF, Jefferies report said that it has made a timely decision in FY21 by changing its policy on the residential segment to sell at project construction start, instead of the policy over the last four years of selling closer to completion.
It also said that DLF’s residential business will further benefit from a lack of competition in the home NCR market which has seen several large developers going bankrupt over the past five years.
The brokerage has given a Buy rating on the DLF stock, with the target price at Rs 285. This is one of the key reason the shares have rallied in the past two sessions.