Mar 01, 2013, 05.11 PM | Source: Moneycontrol.com
Magnum Research is bullish on Puravankara Projects (PPL) and has recommended buy rating on the stock with a target price of Rs 123, in its February 27, 2013 research report.
, Magnum |
"PPL is a real estate developer with a key focus on residential constructions having presence across major cities in South India including Bengaluru, Kochi, Chennai, Hyderabad, Kolkata and Colombo. PPL has also incorporated a wholly owned subsidiary, Provident Housing Ltd, to cater to the growing demand for mid-segment housing.
The company also has a sales and marketing office in the UAE and representatives in the UK and the USA. With increasing interest among Indians in Saudi Arabia to invest in luxury and affordable luxury homes in India, PPL ventured into Saudi Arabia (in June 2012) to cater to the housing needs of Non- Resident Indians in the country.
PPL has the distinction of being the first to obtain FDI in the Indian real estate industry through its joint venture with Singapore based Keppel Land Limited, the property arm of the 54% government owned conglomerate, Keppel Corporation Limited. They are currently developing two projects in Bengaluru and Kolkata.
We expect PPL to witness healthy top-line growth of 37.2% CAGR from Rs 810.4 crore in FY12 to Rs 2,091.5 crore by FY15E on the back of new project launches and readily available inventory. We believe that this acceleration is achievable owing to the occupancy in Bangalore market, which is expected to remain high in the range of 85-90% over the next five years supported by the IT sector growth. PAT is expected to grow at a CAGR of 57.8% to Rs 533.2cr. At CMP of Rs 100.00, it is trading at an adjusted P/BV of 1.0x FY14E BV. We have valued the PPL at P/BV of 1.2x FY14E & maintain our BUY rating on the stock with a target price of Rs 123," says Magnum research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Puravankara to invest Rs 500cr on housing project in Hyderabad
Emporis Projects: Outcome of board meeting
Emporis Projects its meeting held on February 12,
Buy Prestige Estate;target of Rs 218: Axis Securities
Axis Securities is bullish on Prestige Estate has
Buy REC; target of Rs 200: Axis Securities
Axis Securities is bullish on REC has recommended
Buy Axis Bank, Biocon: Siddarth Bhamre
Siddarth Bhamre of Angel Broking recommends buying
Buy Igarashi Motors ltd; target of Rs 590: First call research
First call research is bullish on Igarashi Motors
Buy Bajaj Auto Ltd ; target of Rs 2580: first call research
First call is bullish on Bajaj Auto Ltd and has r