DLF, Godrej Properties and Prestige Estates : Top real estate stocks with largest land bank

Land banking involves the purchase of land for future use that has not yet been developed, taking into account the rise in value as a result of urbanisation or the acquisition of additional infrastructure. In terms of financial metrics and aggregated portfolios, there are real estate companies like DLF Ltd, Godrej Properties Ltd and Prestige Estates Ltd.

DLF Limited has reported good pre-sales and strong cash flow due to its comprehensive project experience; whereas Godrej Properties has recorded high booking volumes along with record profits. Likewise, Prestige Estates has continued to grow in different areas evidenced by good sales figures as well as a promising project pipeline.

Here are the details of land bank stocks

DLF Ltd

The company has 78 years of experience in real estate development, with 178 real estate projects developed, covering an area of approximately 349 million square feet. Since its IPO, it has delivered around 125 million square feet. The company has a development potential of over 220 million square feet through both development and rental projects. Its operational rental portfolio is about 45 million square feet, and it has a product pipeline of around 66 million square feet for development and rental purposes. The launched inventory is valued at approximately ₹30 billion.

In Q1FY25 the company showed a pre-sales number of ₹6,400 crore, driven by the successful launch of Privana West. The profit after tax was ₹646 crore, driven by possession letters issued. The free operating cash flow exceeded ₹2,500 crore during the quarter, indicating a strong cash flow position.

Looking into the market insights budget may not significantly impact sales behaviors. The company has launches planned for Goa, LUX 5, and Privana family in the upcoming quarters. The company's focus is on retail customers rather than speculators, maintaining high price points.

Strong demand and response to DLF products, with high-quality customers showing interest. Minimal speculation in sales, with emphasis on long-term buyers.

Collection is expected to be around ₹2,900 to ₹3,000 crore quarterly as per the con-call. DCCDL's CAPEX for the year is to be ₹1,800 crore, increasing by 18-20% in the next 2-3 years.

Rental income is expected to increase significantly in FY26, especially with new projects coming online.

Godrej Properties Ltd

The company achieved the highest ever net profit of ₹520 crore in Q1 FY25 where total income increased by 25% to ₹1,638 crore and EBITDA surged by 237% to ₹774 crore. Net operating cash flow grew 737% to ₹988 crores, supported by a 54% increase in collections to ₹3,012 crores. Booking value grew by 283% to ₹8,637 crore, with a booking volume of 8.99 million square feet, marking the highest volume sold by any listed developer in India.

From a business development perspective, the company has added two group housing projects in Pune and Bengaluru with an estimated booking value of ₹3,000 crore. This strong pipeline for business development is expected to continue into Q2 FY25. The company aims to maintain a robust business development strategy to support growing sales and replenish inventory.

Prestige Estates Ltd

According to the business portfolio of FY24, the company has completed 150 residential projects comprising a total area of 127 mn sq. ft. Currently, it has 37 ongoing projects for 65 sqft and 30 projects under the planning stage for 75 mn sqft.

The company has completed 125 office projects comprising a total area of 50 mn sq. ft. Under this segment, it currently has 12 ongoing projects for 23 mn Sq.ft and has 7 projects under the planning stage across 8 mn sqft.

In the retail segment, the company has completed 13 retail projects comprising a total area of 10 mn sq. ft. Under this segment, it currently has 1 ongoing project for 1 mn Sq. ft and 6 projects for a total of 6 mn sqft are under the planning stage.

The company develops landmark hotels, resorts, spas and service apartments. It has completed 12 projects comprising a total of 4 mn sqft(Operating 10 Hotels - 1439 Keys). Under this segment, it currently has 3 ongoing projects of a total of 3 mn sqft(566 Keys) and 5 projects are under planning comprising 2 mn sqft (2575 keys).

The portfolio is balanced across different assets. 185 projects under maintenance with a total area of 120 mn sqft, 95 projects in the pipeline with a total area of 150 mn sqft.

In Q1 FY25 sales amounted to ₹3,030 crore, supported by healthy collections of ₹2,916 crore. Sold 2.86 million square feet across 1,364 units. Average realisations increased to ₹11,934 per square foot for apartments, villas, and commercial spaces, and ₹7,285 per square foot for plots.

Management is optimistic about demand, citing a strong market appetite. Anticipates a significant pickup in presales in the second half of FY'25 due to upcoming launches.

Conclusion

DLF, Godrej, and Prestige are leading land banking companies with strong market positions. Their robust financial metrics and promising project pipelines indicate continued growth and stability in the real estate sector.