DLF, a real estate company that is one of the leaders in the real estate market, mainly focuses on Delhi and Gurugram.
DLF vs Macrotech
Macrotech Developers, which Lodha Group owns, has been active in Mumbai’s real estate market since 1986. They are also one of the leaders in the real estate market and have developed a well-established name in the market.
Despite negative global sentiments and uncertainties in the market, India’s economy has shown remarkable resilience. It has attracted significant investments from FII (foreign institutional investors) in real estate. Both residential and office space segments have performed well, with record sales and improved occupancy rates.
DLF’s revenue has declined for the past few years, while Macrotech’s revenue dropped in FY21 but has seen a slight increase in revenue in FY23.
DLF’s net profit increased by 36% due to lower land acquisition costs, but both companies have faced volatility in their margins.
Recently, DLF has given record-breaking sales on a new project in Gurugram. Compared to Macrotech, DLF maintains higher profit margins, but both companies face margin volatility.
Return ratios like return on equity and return on capital employed for both companies have not been stable and have seen their ups and downs, with DLF having lower ratios than Macrotech.
DLF has lower debt levels and a higher interest coverage ratio compared to Macrotech, indicating a stronger financial position.
Future Plans Of Both Companies Look Promising.
- DLF aims to diversify its portfolio across multiple cities, expand its retail and commercial spaces, and reduce its debts.
- Meanwhile, Macrotech has planned to capitalize on projects like Palava City near Mumbai and expand its presence in Bengaluru through joint development agreements, aiming to reduce its debt.
DLF’s stock price, market cap, and EPS (earnings per share) are lower than those of Macrotech. DLF stock price looks more undervalued; its lower P/E ratio supports this argument.
Both companies have significant promoter holdings, indicating strong backing from their founders.
