Motilal Oswal's research report on Kolte Patil Developers
A regional leader…: Kolte Patil Developers Ltd. (KPDL) is one of the leading real estate developers in Pune, with a growing presence in the Mumbai Metropolitan Region (MMR) and Bengaluru markets. In over three decades of its presence, KPDL has delivered more than 26msf of projects, with another 43msf in the pipeline at various stages (ongoing/upcoming/future). …with steady performance and healthy balance sheet: During FY12-21, KPDL’s presales bookings remained stagnant at INR12-13b, with occasional spikes in certain years. While company’s debt-averse strategy (net debt-to-equity <0.5x) constrained its growth, KPDL’s emphasis on execution and cash flows ensured that balance sheet further strengthened to a net cash position as of Dec’23.
Outlook
We value the existing pipeline and targeted project additions of KPDL in FY24 based on an NPV basis to arrive at a fair value of INR700, indicating potential upside of 34%. We initiate coverage on the stock with a BUY rating.
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