Buy Prestige Estates; target of Rs 219: Motilal Oswal
Motilal Oswal is bullish on Prestige Estates Projects and has recommended buy rating on the stock with a target of Rs 219 in its May 22, 2013 research report.
Motilal Oswal`s research report on Prestige Estates
“Prestige Estates Projects' (PEPL) 4QFY13 revenue grew 1.8x YoY (14 percent QoQ) to INR5.6b v/s est. of INR4.8b. Key POCM revenue contributors were Bella Vista, Chennai (INR2.1b, 38 percent), Silver Oak (INR0.9b, 15 percent), Sunny Side (INR1.1b, 20 percent) and Polygon (INR0.6b, 11 percent). Revenue from Bella Vista and Silver Oak commenced in 4QFY13. FY13 consolidated revenue was meaningfully higher than estimates, with 85 percent growth to INR19.5b. EBITDA grew 95 percent to INR5.8b (2pp margin expansion), while PAT grew 2.5x to INR2.9b.” “Standalone EBITDA grew 93 percent YoY (declined 7 percent QoQ) to INR1.3b (v/s est. of INR1.5b), led by a sharp QoQ margin contraction to 23.6 percent (v/s 28.9 percent in 3QFY13 and our estimate of 30 percent). Higher employee cost (2.3x QoQ) is one of the key attributable reasons (other than change in project mix and certain cost adjustments). PAT grew 132 percent YoY to INR890m (v/s est. of INR914m), led by lower tax and higher other income. Pre-sales run rate moderated to 0.9msf (INR5.4b) v/s 1.4msf (INR7.5b) in 3QFY13, taking FY13 figures growing by 48 percent to INR31.2b (6msf), 24 percent higher than the management's guidance of INR25b.” “For FY14, the management has guided pre-sales of INR37b (19 percent growth) against our current estimate of INR35.5b. Customer collections improved sequentially to INR5.3b (v/s est. of INR5.1b). FY13 collections grew 48 percent to INR19.7b (v/s our est. of INR19.3b). It has guided for collections of INR23b (17 percent growth) in FY14 as against our estimate of INR22.8b. Consolidated net debt stood at INR17.9b (v/s INR18.1b in 3QFY13); PEPL's effective stake increased INR0.7b QoQ to INR17b. The company has declared a dividend of INR1.2/share (same as FY12). The stock trades at 13.6x FY15E EPS, 1.8x FY15E BV and 19 percent discount to our NAV. Maintain Buy,” says Motilal Oswal 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. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
