Oct 19, 2011, 04.01 PM IST | Source: Moneycontrol.com

Accumulate Peninsula Land; target of Rs 49: PLilladher

Prabhudas Lilladher is bullish on Peninsula Land and has recommended accumulate rating on the stock with a target of Rs 49 in its October 18, 2011 research report.

Prabhudas Lilladher is bullish on Peninsula Land and has recommended accumulate rating on the stock with a target of Rs 49 in its October 18, 2011 research report.

Peninsula Land (PLL) reported weak results, with revenues declining by 60% YoY and 53% QoQ to Rs496m and margins subdued at 31% as against 41% in Q2FY11 and 51% in Q1FY12. Profits, too, declined by 79% YoY and 73% QoQ to Rs137m. Revenues, on account of certain delays with regards to documentation of sales at the companys PBP project, were subdued at Rs260m, corresponding to sales of 15k sq.ft. The remaining sales, where documentation is still pending, shall reflect in Q3. Besides this project, PLL booked Rs120m from Peninsula Techno Park and Rs45m from Ashok Gardens.

PLL plans to launch 5-6 projects in H2FY12. However, there seems to be a delay in these plans, since with the large part of the festive season already concluded, we have not seen any major launches. Projects such as Lonavala, Hinjewadi (Pune), Hyderabad and Goa are all still in queue. PLL also acquired an additional 45k sq.ft project in South Mumbai called Bishop Gate located at Breach Candy for Rs2.72bn which translates to ~Rs60k/sq.ft. Although the acquisition cost of the same seems steep, with the location being extremely prime, the company expects to fetch a decent value. PLL plans to launch this project within six months as the title for the project is clear.

Our estimate of the PLLs NAV stands at Rs70/share. We are applying a 30% discount to the NAV to arrive at our target price of Rs 49 per share. We maintain Accumulate on the stock, says Prabhudas Lilladher research report. 

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