Current Rating and Its Significance
MarketsMOJO currently assigns DLF Ltd. a 'Sell' rating, indicating a cautious stance towards the stock. This rating suggests that investors should consider reducing exposure or avoiding new purchases at present, given the company's valuation and performance metrics. The rating was revised on 22 January 2026, moving from a 'Strong Sell' to a 'Sell', reflecting a modest improvement in the company’s outlook, but still signalling significant concerns.
Here’s How DLF Ltd. Looks Today
As of 07 February 2026, DLF Ltd. exhibits a mixed financial and market profile. The company’s Mojo Score stands at 30.0, which corresponds to the 'Sell' grade. This score reflects an improvement from the previous 21 points ('Strong Sell'), but remains below the threshold for a neutral or positive rating. The stock’s recent price movement shows a modest 0.13% gain on the day, with a one-week return of +4.19%, though longer-term trends remain negative.
Quality Assessment
DLF Ltd.’s quality grade is assessed as 'average'. This indicates that while the company maintains a stable operational base, it does not demonstrate exceptional strengths in profitability or growth metrics. The latest quarterly results for December 2025 reveal a decline in net sales by 10.4% compared to the previous four-quarter average, with net sales at ₹2,020.22 crores. Profit before tax (excluding other income) also fell by 16.1% to ₹323.43 crores. These figures suggest challenges in sustaining revenue growth and operational efficiency.
Valuation Considerations
Valuation remains a key concern for DLF Ltd., with the company graded as 'very expensive'. The stock trades at a price-to-book value of 3.8, which is high relative to its sector peers and historical averages. Despite a return on equity (ROE) of 10.3%, the elevated valuation metrics imply that the market has priced in significant growth expectations that the company has yet to fully realise. The PEG ratio stands at an elevated 38, signalling that earnings growth is not currently justifying the high price multiples.
Financial Trend Analysis
The financial trend for DLF Ltd. is described as 'flat'. Over the past year, the company’s profits have increased marginally by 0.2%, indicating stagnation rather than robust growth. Meanwhile, the stock has delivered a negative return of -13.40% over the same period, underperforming the broader BSE500 index, which has gained 7.71%. This divergence highlights the stock’s relative weakness and the market’s cautious stance on its near-term prospects.
Technical Outlook
From a technical perspective, DLF Ltd. is currently graded as 'bearish'. The stock has experienced downward momentum over the past three and six months, with returns of -12.71% and -13.52% respectively. The negative technical signals suggest that investor sentiment remains subdued, and the stock may face resistance in reversing its downward trajectory in the near term.
Summary for Investors
In summary, the 'Sell' rating on DLF Ltd. reflects a combination of average operational quality, expensive valuation, flat financial trends, and bearish technical indicators. Investors should interpret this rating as a cautionary signal, indicating that the stock currently carries elevated risk relative to its potential reward. While the company has shown some resilience in profit generation, the high valuation and subdued market performance suggest limited upside in the short to medium term.
Market Performance and Peer Comparison
DLF Ltd.’s underperformance relative to the broader market is notable. While the BSE500 index has delivered a positive return of 7.71% over the past year, DLF’s stock price has declined by 13.40%. This gap emphasises the challenges the company faces in regaining investor confidence and market share. The stock’s recent quarterly results, with declining sales and profits, further reinforce the need for caution.
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Outlook and Considerations
Looking ahead, investors should monitor DLF Ltd.’s ability to improve its sales and profit growth, as well as any shifts in valuation multiples that might better reflect the company’s fundamentals. The current 'Sell' rating advises prudence, especially given the stock’s technical weakness and expensive valuation. Market participants may wish to consider alternative opportunities within the realty sector or broader market that offer stronger growth prospects and more attractive valuations.
Conclusion
DLF Ltd.’s current 'Sell' rating by MarketsMOJO, last updated on 22 January 2026, is grounded in a comprehensive analysis of quality, valuation, financial trends, and technical factors as of 07 February 2026. While the company remains a significant player in the realty sector, the combination of flat financial performance, high valuation, and bearish technical signals suggests that investors should approach the stock with caution. This rating serves as a guide for portfolio management, encouraging a careful assessment of risk and reward in the current market environment.
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