dlf deven Presentation1

8/8/2019 dlf deven Presentation1

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DLF


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Name Roll

No:

Deven Pipalia 13

Jitendra Dave 18

Milroy Almeida 25

Neha Kulkarni 28


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REAL ESTATE SEGMENTS RESIDENTIAL SEGMENTS:- Economic crisis of 2008

In current scenario

RESIDENTIAL DEMAND (2011-2015)

It is expected that the demand for residential segment is going to increase by cumulative 9.3million units by 2015. The affordable and mid segment category is likely to constitute 85% ofthe total demand. 43% of the total demand is likely to be generated in the cities ofBangalore, Mumbai & NCR.

0

500000

1000000

1500000

2000000

2500000

2011E 2012E 2013E 2014E 2015E


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COMMERCIAL SEGMENT :-

OFFICE DEMAND(2011 2015)

It is expected that the cumulative demand for office space is going to be around258 million sq.ft

0

10

20

30

40

50

60

70

2011E 2012E 2013E 2014E 2015E

Million sq.ft


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RETAIL SEGMENT:-

As per the research done the retail demand is estimated to be cumulative

55.1 m.s.f by 2015

0

2

4

6

8

10

12

14

2011E 2012E 2013E 2014E 2015E

m.s.f


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Company Analysis


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About DLFIt has over six decades of real estate experience by constantly

upgrading its internal skill sets and resource capabilities.

Delhi Lease and Finance in 1946 aimed at revolutionizing the

Real Estate industry in the country.

Led by the visionary K. P. Singh in 1946, DLF began its journey

from developing some of the initial Residential Colonies in the

city.

They have also started to diversify into other real estate related

businesses.

BUILDING INDIA- Mission and vision of company


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Business Review

DLF

Development

Homes

Execution

Rental

Offices

SEZs

Retail

Other

Hotels

LifeInsurance

Asset mang.


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86%

9%

5%

Revenues

Development

Rental

other


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Home Segment

Region /

Head

City Area

Launched

(m.s.f.)

Area

Sold

(m.s.f.)

Sales Value

(Rs. Crs)

Average

Realization (p.s.f.)

Super Metro Delhi 4.56 4.21 3,300 7,838

Gurgaon DLF City & New

Gurgaon

3.50 3.12 2,550 8,173

Rest of India Panchkula, Banglore &

Goa

5.17 3.90 950 2,439

Existing

Stock

New Gurgaon, Kochi &

Indore

0.00 1.32 350 2,652

Total 13.23 12.55 7,150 21,102

12.2

6.3

0

2

4

6

8

10

12

14

2010 2009

Area sold (m.s.f)


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Execution

30%

11%38%

21%

Area unde

rConst

ruction (m.s.f.)

Segment/Regionwise

Rental Super Metros Gurgaon Rest of India


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Rental Business

Offices Segment

SEZs (Special Economic Zones)

Retail Segment


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Other Segments

Hotels

Life Insurance

Asset Management


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Strengths

DLF has a very good market share

Brand Value

Huge supplier base ensures a fixed rawmaterial cost

A well established and firm base in northIndia

Weaknesses

External allocation of largecontracts becomes difficult.

Lack of clearly define processesand procedures for constructionand its management.

Opportunities

Expansion of business in other parts ofIndia

Investment in raw material Backward Vertical Integration

Threats

Increasing labor costs & HeavyCompetition

Competitors may try to get more marketshare through improved techniques


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FI

NA

NCIAL

VALUATI

ON


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Key Assumptions

PARTICULARS VALUES

RISK FREE RATE 8%

BETA 1.65

D/E RATIO 0.53

RETURN PREMIUM 8%

COST OF EQUITY 21.2%

COST OF DEBT (POST-TAX) 4.2%

TERMINAL GROWTH RATE 6%

WACC 14%


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High Growth Phase CY 1 2 3 4 5 6 7 8 9 10

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

TERMINAL

VALUE

EBIT 4,796.20 6,158.39 7,900.62 10,125.53 12,962.80 13,985.60 15,089.52 16,281.01 17,567.03 18,955.11 20,453.38 21680.58

EBIT (1-t) 3951.11 5073.28 6508.53 8341.41 10678.75 11521.34 12430.75 13412.30 14471.72 15615.22 16849.49 17860.46

-(Capex- Depreciation) -110.56 1198.43 1414.15 1668.69 875.14 982.43 1061.03 1145.91 1237.58 1336.59 1443.51 1530.12

-Delta WC -5269.6 1205.23 1853.25 2028.96 2221.48 2432.42 2663.56 2916.85 3194.42 3498.61 3832.01 4061.93

FCFF 9331.27 2669.61 3241.14 4643.76 7582.13 8106.49 8706.16 9349.54 10039.73 10780.02 11573.97 12268.41

Present Value 2338.98 2488.02 3123.24 4467.92 4185.28 3938.20 3705.44 3486.18 3279.64 3085.08 76144.55

SUM of PV 34097.97

total 110242.53

Less DEBT VALUE 45859.05

EQUITY VALUE 64383.47

FCFE 64383.47

no.of shares 169.73

Price pershare 379

CMP 373


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Relative Valuation


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P/E Ratios:-

35.64

17.06

33.36

DLF UNITECH HDIL


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P/BV

2.6635

2.26

1.46

DLF UNITECH HDIL


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EV/EBITDA

12

21.17

10.78

DLF UNITECH HDIL


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Market cap/ Sales

8.08

21.17

6.88

DLF UNITECH HDIL


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Conclusion


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