Kolte-Patil Developers Research Report By HDFC Sec
| Kolte-Patil Developers Research Report By HDFC Sec | |
| Company: | Kolte-Patil Developers |
| Brokerage: | HDFC Sec |
| Date of report: | June 7, 2017 |
| Type of Report: | Result Update |
| Recommendation: | Buy |
| Upside Potential: | 11% |
| Summary: | Strong recovery |
| Full Report: | Click here to download the file in pdf format |
| Tags: | HDFC Sec, Kolte-Patil Developers |
| Strong recovery Kolte Patil Developers Ltd. (KPDL) delivered strong 4QFY17 revenue growth of 62.5% YoY. Outperformance was led by Life Republic, Mirabillis and Corolla projects. The impact of demonetization seems to be largely behind with KPDL pre-sales rebounding 72% QoQ to 0.55mn sqft (last 12 quarters average run-rate). KPDL achieved 2mn sqft of pre-sales during FY17 and in base case expects similar run-rate during FY18E. Uncertainties around new launch approval (~4.5mn sqft) timeline under RERA remain key unknown. Hence, KPDL has not given any formal pre-sales guidance for FY18E. KPDL with 70% of launch portfolio (~7.5mn sqft) under LIG/MIG segment will be key beneficiary of Government affordable housing stimulus. This shall result in strong pre-sales recovery from FY19E. We upgrade KPDL to BUY from NEU, increase NAV based TP to Rs 195/sh (vs Rs 177/sh earlier). |
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