Should You Invest in DLF Limited?
Investors and analysts all over the world believe that DLF Limited is an interesting stock to invest in. As already discussed in the article DLF has a tendency of divesting it's non-strategic assets, to maintain a good financial health and it has a strong history of performance.
In 2018, it outperformed its past performance. Also, it's growth surpassed the Real estate industry Expansion. However, presently, the stocks of DLF are trading at one-tenth of its peak valuation. The BJP-led Haryana government has stated that there will be a probe on all the land scams, and one of the land scams involves DLF. DLF was also slapped with a penalty from SEBI for failing to disclose key information at the time of its record-breaking 2007 IPO.
Between the FY 201-2015, the rental income of DLF increased by three times but it's debt remained constant in this period. This shows that there is no immediate liquidity crisis for the company.
Betting on DLF Limited at this point could go either way. SEBI slapping a penalty on the company has raised many red flags and it can affect the financial health of the company. Analysts have also hinted on the unpredictability of the value of DLF stocks. As of now, it is better to avoid investing in the company.
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