Buy Prestige Estates; target Rs 191: Firstcall Research
Firstcall Research is bullish on Prestige Estates Projects and has recommended buy rating on the stock with a target price of Rs 191 in its March 15, 2013 research report.
March 19, 2013 / 11:17 IST
Firstcall Research is bullish on Prestige Estates Projects and has recommended buy rating on the stock with a target price of Rs 191 in its March 15, 2013 research report.
"Prestige Estates Projects, a real estate development company, primarily engages in developing and leasing properties in the residential, commercial, hospitality, and retail sectors in India. During the quarter, the robust growth of Net Profit is increased by 227.93% to Rs. 920.50 million. The company's net sales registered a 194.90% increase and stood at a record Rs. 4920.70 million from Rs. 1668.60 million over the corresponding quarter last year. Prestige Estates Projects Retail segment aims to complete the construction of all the on-going malls by 2015 and target an increase in lease rentals substantially by 2015 from this segment. Prestige Estates Projects Limited is planning to enhance its presence in Chennai and Kochi. Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 24% over 2011 to 2014E respectively.The company's net profit jump's to Rs.920.50 million against Rs.280.70 million in the corresponding quarter ending of previous year, an increase of 227.93%. Revenue for the quarter stands up by 194.90% to Rs.4920.70 million from Rs.1668.60 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.2.81 a share during the quarter, registering at 227.93% increase over previous year period. Profit before interest, depreciation and tax is Rs.1619.00 millions as against Rs.630.20 millions in the corresponding period of the previous year.Outlook and Conclusion: At the current market price of Rs.169.00, the stock P/E ratio is at 18.61 x FY13E and 14.29 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.9.08 and Rs.11.83 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 24% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 12.22 x for FY13E and 9.83 x for FY14E. Price to Book Value of the stock is expected to be at 2.29 x and 1.97 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 191 for Medium to Long term investment," says Firstcall Research report.FIIs holding more than 30% in Indian cos 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 on the attachment 
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