Accumulate Prestige Estates; target of Rs 226: PLilladher

Prabhudas Lilladher is bullish on Prestige Estates Projects and has recommended accumulate rating on the stock with a target of Rs 226 in its February 13, 2013 research report.

“Prestige Estates, four projects - Kingfisher Towers, Park View, Tranquillity and Sunny Side crossed the revenue threshold this quarter which led to revenues trebling on a YoY basis to Rs4.9bn, translating to a growth of 104percent on a sequential basis. Margins were weaker by 110bps at 28.9percent on a YoY and QoQ basis. PAT for the quarter stood at Rs0.9bn, growth of 228percent YoY and 102percent QoQ.”

“Although launches were lower during the quarter at 1.64m sq.ft as compared to 6.25m sq.ft in Q2FY13, sales for the quarter stood strong at 1.44m sq.ft in volume terms as against 1.62m sq.ft in Q2FY13. In terms of value, sales stood at Rs7.5bn, 59percent YoY growth and 7.6percent QoQ decline. For 9MFY13, growth in terms of sales volume and value is 42percent & 76percent, respectively. Launches during the quarter included two residential launches in Bengaluru - Prestige Royal Gardens & Prestige Casabella, totalling to 0.91m sq.ft. On the commercial side, launches included three projects in Bengaluru - Prestige Falcon Tower, Prestige Star II and Prestige Trinity Centre, totalling to 0.73m sq.ft.”

“A continuing healthy performance on all fronts, improving operating metrics and a strong sales outlook in Bengaluru aids us in retaining our positive stance on the company. The company’s net asset value, post debt, stands at Rs74bn which translates to Rs226/share. We maintain. Accumulate on the stock,” says Prabhudas Lilladher research report. 

Public holding more than 90% in Indian cos 

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