Buy Kolte Patil Developers; target of Rs 489: Motilal Oswal

Motilal Oswal's research report on Kolte Patil Developers

Kolte Patil Developers’ (KPDL) bookings declined 13% YoY/2% QoQ to INR6.2b (42% below our estimates) in 1QFY26, primarily due to the absence of new launches. Sales were mainly driven by sustenance inventory. Volumes declined 13% YoY but rose 5% QoQ to 0.8msf (32% below our estimates). Of these, 63% (0.53msf) was driven by KPDL's flagship project, Life Republic Integrated Township. Average realization declined 1% YoY/7% QoQ to INR7,337 (15% below our estimates). Collections stood at INR5.5b, down 10%/22% YoY/QoQ (33% below our estimates).

Outlook

We have increased the share capital and number of shares, leading to a revised TP of INR489 (INR571 earlier). We reiterate our BUY rating with a potential upside of 16%.