DLF had adopted the policy of only selling post-completion properties and that is now paying rich dividends for the company. It not only saves them from the stringent regulations of the RERA, but also allows them to effectively monetize their property bank. The recent stock price spurt in DLF came after the company announced that it had settled the entire Rs 8,700 crore payable to DLF Cyber City Developers Ltd (DCCDL), its joint venture with Singapore-based GIC. These dues were effectively settled by transferring completed commercial properties and land parcels as well as cash payment. With this exercise, DLF has completed the exercise of transforming its balance sheet and consolidation of all rental assets under the DCCDL. The company is also on target to become absolutely zero debt by the first half of year 2021.

Markets have also been extremely impressed by the rapid sale of high end property effected by DLF. In fact, DLF has sold 376 ready-to-move luxury flats worth Rs 700 crore on the first day of the launch of its new housing project in Gurugram. This is despite the overall property market facing demand slowdown. If you look at the report brought out by most brokerages, the price targets are closer to the range of Rs.250-Rs.300 mark. Most analysts have also upgrade their outlook and price targets for DLF considering that the inventory monetization in the form of Phase 5 sales may happen at a much faster pace.