Citigroup Research is bullish on Puravankara Projects and has recommended buy rating on the stock with a target price of Rs 536, October 30, 2007. "Puravankara Project Q2FY08 results were ahead of our expectations. We rate Puravankara Buy (1M) with a target price of Rs 536. Growth for Puravankara's residential-heavy model stems from its quality landbank of ~107m sq ft. Its clear development titles, acquired at a low cost of ~Rs100/sq ft and a large part already paid, differentiates it from other developers. We believe its competitive strength lies in some of its operating virtues: it runs primarily a direct marketing model, supports its development activity with its own construction capabilities, has relatively high levels of in-house execution, and enjoys a strong execution and post-delivery record. Puravankara's focus on S. India, in the larger markets of Bangalore (73% of gross NAV) and Chennai (8%), is in our view an advantage over developers with a National Capital Region (NCR) bias." according to Citigroup Research report.
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