DLF is No.4 in the world

September 29, 2007

Piggybacking on the India growth story, Indian realty major DLF is making its presence felt amongst the world’s largest real estate players. On the basis of market capitalisation it appears in fourth position. The market cap of DLF is Rs 1,28,563 crore.

What makes the achievement even more remarkable is the fact that it was only a few months back that DLF listed on the bourses raising $2.4 billion of funds. Having appeared in this list in such a short span of time is a big achievement for DLF. Not only is this big for DLF but also for the Indian real estate sector.

The other players on the list include Hong Kong-based Sun Hung Kai, Country Garden and Cheung Kong, and Japan-based Mitsubishi Estate Co. While DLF does reasonably well in terms of market cap the company still has some way to go when it comes to profits and sales.

In terms of profit contribution DLF accounts for just 7% of the total profits generated by the top five companies in this list and 4% in terms of sales contribution. The phenomenal market cap then is perhaps an indication of the high valuations being given by investors because of the growth potential that they see in DLF.

Clearly, the Indian real estate industry has come a long way since the days when the largest Arab developer Emaar Properties and CapitaLand, the biggest developer in South-East Asia, which partnered with Indian players, were regarded with awe by the Indian industry. Today DLF has left the two biggies way behind in this list.

To add to this fact DLF leads the domestic real estate sector with the largest market capitalisation. Till some time back real estate sector was absent in the BSE market capitalisation. Since the listing of DLF and a couple of other real estate players the share of this sector has risen from less than 1% to a little over than 5% now.

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