Buy Kolte Patil Developers; target of Rs 525: Motilal Oswal

Motilal Oswal is bullish on Kolte Patil Developers recommended buy rating on the stock with a target price of Rs 525 in its research report dated November 13, 2024.

Edited by : Subhash Helgaokar

November 15, 2024 / 19:37 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Kolte Patil Developers

Kolte Patil Developers (KPDL) reported pre-sales of INR7.7b in 2QFY25, up 22% YoY, guided by the strong sales momentum in Life Republic (50% of total sales) and 24K (28%). Volumes inched up 5% YoY to 1.03msf as presales were driven by the higher ticket size products. In 1HFY25, pre-sales stood at INR14.8b (11% YoY). As per its FY25 launch plan, KPDL could launch only 2.21msf with an estimated GDV of INR18b. It intends to launch another 5.76msf with an estimated GDV of INR52b in 2HFY25, subject to approvals. Pune contributed 95% or INR7.3b to total pre-sales (vs. 85% in Q1FY25) while MMR and Bengaluru’s contribution dropped to INR0.4b. Excluding LR, pre-sales from Pune sustained at INR3b per quarter, while LR’s contribution was INR3.9b for 2QFY25. Collections rose to 17% YoY at INR5.5b, leading to a two-fold jump in OCF to INR2b. KPDL spent INR1.5b on land and approval, resulting in a surplus of INR0.6b. Net cash as of Sept’24 stood at INR580m.

Outlook

We maintain FY25E pre-sales at INR35b but await further clarity on the progress on business development after a weak 1HFY25. There might be approval delays that may lead to a spill over of targeted launches to FY26, so we introduce a 15% discount to the 1x NAV, which leads to a reduction in our TP to INR525 (INR620 earlier). We continue to maintain our ‘BUY’ rating with a potential upside of 46%.

For all recommendations report, click here