Prabhudas Lilladher is bullish on Peninsula Land and has recommended accumulate rating on the stock with a target of Rs 59 in its May 28, 2013 research report.
Prabhudas Lilladher`s research report on Peninsula Land
“PENL reported revenues to the tune of Rs1,060m, a sequential decline of 23% on account of Peninsula Business Park’s (PBP’s) sales being lower during this quarter. Margins during the quarter were dismal at 7% which resulted in 83% decline in EBITDA. However, lower finance cost during the quarter led to a PAT decline by only 2% sequentially to Rs358m. During the year, the company sold 339K sq.ft at PBP, while 131K sq.ft is yet to be sold which is an inventory of ~Rs2bn. Revenues for FY13 stood at Rs7.4bn, 39% YoY growth, of which, sales from PBP were Rs61bn. Margins stood at 26.5% as against 33.4% in FY12. The decline in margins is on account of a change in revenue-mix, whereby, high-margin sales from Peninsula Technopark are not present in FY13. The company’s PAT stood at Rs1.95bn, growth of 29%.”
“PENL currently has four projects under construction, which includes their developments at Nashik, Goa, Khandala and Pune. The company has sold 0.57m sq.ft across these projects, amounting to ~Rs2.5bn. Currently, only Nashik has reached the revenue recognition threshold, while the other three are likely to reach the target during the course of the financial year. During FY14, the company has planned three more launches, all in Mumbai. Two of these are South Mumbai projects, Bishop Gate at Breach Candy (10 duplex of which 6 have been sold) and Carmicheal road (19 apartments), while one is located in Central Mumbai at Sewri, next to their previous development ‘ Ashok Gardens’. Overall, the company has ~4mn sq.ft in pipeline roughly valued ~Rs60-80bn which shall accrue in the next 3-4 years.”
“With good visibility in terms of launches as well as good cash generation from PBP sales, we are maintaining our positive stance on the stock. We maintain ‘Accumulate’ with a price target of Rs59,” says Prabhudas Lilladher research report.
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