DLF has become expensive after climbing from a July 1 low, analysts Vishnu Gopal and Shruti Gandhi said in a note to clients today, as they cut the price target for the stock by 21 percent to 406 rupees. The shares, previously rated ``neutral,'' rose 30 percent from the one-year low to close at 478.85 rupees yesterday.

``We delivered beyond what many had expected in the past,'' Ramesh Sanka, chief financial officer of New Delhi-based DLF, said by phone today. ``Time will show who is correct.''

Smaller rival Parsvnath Developers Ltd. was also cut to ``sell'' from ``neutral'' on concern that the company is struggling to sell properties and has high debt ratios.

``Parsvnath could face a cash crunch if sales volumes remain weak and we believe it may not be able to liquidate its large undeveloped land bank with ease in the current market environment,'' the Goldman analysts said in the note.

Parsvnath has fallen 75 percent this year, making it the third-worst performer on the Bombay Stock Exchange's real estate index.

``We have not faced any slowdown in demand from users and don't have any unsold property that's ready,'' Pradeep Jain, chairman of Parsvnath Developers, said in a phone interview from New Delhi. ``We are not selling land.''