Buy Kolte-Patil; target of Rs 63: Firstcall Research

Firstcall Research is bullish on Kolte-Patil Developers and has recommended buy rating on the stock with a target of Rs 63 in its October 12, 2012 research report.

“Kolte Patil Developers Ltd. (KPDL) is among the top premier league of real estate developers in India. It is headquartered in Pune, had created a niche for its esteemed clients' over two decades in terms of delivering comprehensive residential, Commercial, IT & Hospitality and Construction solutions across all realtors categories. KPDL has been on the forefront of developments with its trademark philosophy of ‘Creation and not Construction’. With over 5 million square feet of landmark developments across Pune and Bengaluru, KPDL has created a remarkable difference by pioneering new lifestyle concepts, leveraging cutting edge technology and creating insightful designs. KPDL’s extensive spectrum of creations spans across multiple segments like residential projects, business and retail properties, IT Parks, Integrated Townships and Hospitality Infrastructure. Its core business operations feature varied aspects of construction business, such as location identification, acquisition, project planning, designing and development. The company has achieved highest stature in professionalism, quality controls and integrity in the building and construction sector.”

“Kolte Patil Developers Ltd (KPDL) is among the top premier league of real estate developers in India had created a niche over two decades in terms of delivering comprehensive residential, Commercial, IT & Hospitality and Construction solutions across all realtors categories, reported its financial results for the quarter ended 30th Jun, 2012. The first quarter witness a healthy increase in overall sales as well as profitability on account, an new projects and joint ventures. The company’s net profit jumps to Rs.106.49 millions against Rs.49.10 millions in the corresponding quarter ending of previous year, an increase of 116.88%. Revenue for the quarter rose 122.21% to Rs.366.94 millions from Rs.165.13 millions, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.41 a share during the quarter, registering 116.88% increase over previous year period. Profit before interest, depreciation and tax is Rs.166.62 millions as against Rs.64.09 millions in the corresponding period of the previous year.”

“At the current market price of Rs.55.00, the stock P/E ratio is at 9.89 x FY13E and 8.04 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.5.56 and Rs.6.84 respectively. Net Sales of the company are expected to grow at a CAGR of 5% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.71 x for FY13E and 5.66 x for FY14E. Price to Book Value of the stock is expected to be at 0.55 x and 0.51 x respectively for FY13E and FY14E. The first quarter witness a healthy increase in overall sales as well as profitability on account of new projects and joint ventures. 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.63 for medium to long term investment,” says Firstcall Research report.

Institutional holding more than 40% in Indian cos

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