DLF scales a series of 52-week highs; should you wait before picking for long term?

DLF shares have scaled a series of 52-week peaks in the recent past, with the stock coming within Rs 20 of the Rs 500 mark. DLF is on market wizard Anil Singhvi's long-term 'buy' list. Should investors wait for the real estate stock to cool down a bit before adding positions or go ahead and buy aggressively?

The recent bout of 52-week highs has brought DLF shares within Rs 20 of the Rs 500 mark. | Image: Reuters

DLF shares have scaled a series of 52-week highs, and counting, and remain among the choicest picks of analysts in the real estate basket. The stock has grown 27 per cent in value in 2023 so far and 45 per cent in the last one year, as against the headline Nifty index's gain of about one per cent and 13 per cent respectively.

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On May 23, DLF shares gained by as much as Rs 3.3 or 0.7 per cent to clock a 52-week high of Rs 481.4 apiece on BSE — the latest among a series of recent peaks.

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Should you wait for a decline in the property developer's shares, or go ahead and buy anyway?

EDITOR'S TAKE | Anil Singhvi has a long-term 'buy' on DLF shares

DLF is among Zee Business Managing Editor Anil Singhvi's long-term recommendations for creating wealth. The market wizard has set a target price of Rs 800 for the stock — which implies a potential upside of 66 per cent from the latest 52-week high.

What analysts make of DLF shares

Brokerage	Rating	Target price (in rupees)	Upside (%)
CLSA	Buy	540	13
JPMorgan	Overweight	510	6.7
Jefferies	Buy	510	6.7
HDFC Securities	Buy	504	5.4
IDBI Capital Markets	Buy	530	10.9

IDBI Capital Markets has a 'buy' call on DLF shares with a target of Rs 530 — close to their 2009 peak.

AK Prabhakar, Head of Research at IDBI Capital, believes one can add the stock on declines and even enter at existing levels to make the most of an expected boost in the realty space.

"Real estate as a sector is one that normally outperforms and the move is unlikely to stop here. It cannot be ignored now... Those looking to enter DLF shares have no choice but to enter at current levels," Prabhakar told Zeebiz.com.

DLF's land bank is unmatchable among its listed peers and spread well across the country, he pointed out, adding: "The company's new management is more aggressive and focused."

Other stocks on Anil Singhvi's long-term 'buy' list

Besides DLF, Singhvi also has HDFC Bank, Tata Motors and Larsen & Toubro among his eight long-term favourites. Check out Anil Singhvi's top picks for long-term wealth creation

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