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Last Updated : Sep 18, 2018 02:08 PM IST | Source: Moneycontrol.com

Buy Prestige Estate Projects; target of Rs 375: JM Financial

JM Financial is bullish on Prestige Estate Projects has recommended buy rating on the stock with a target price of Rs 375 in its research report dated July 29, 2018.

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JM Financial's research report on Prestige Estate Projects


Prestige Estates (PEPL) reported robust operations as company benefitted from projects launched in 4QFY18. Pre-sales volume was at 1.11msf and sales value at INR 7.6bn (+69% YoY) during the quarter. Completed inventory declined by 0.67msf during the quarter (60% of sales). Collection from residential segment was reported at INR 7.5bn (vs. INR 8.0bnquarterly average). PEPL has shifted to completion method of accounting under Ind AS 115. Net debt increased by INR 8.2bn to INR 72.8bn primarily on CapitaLand stake acquisition (INR 3.4bn) and consolidation of INR 2.8bn debt related to the acquisition. While the increase in debt is a concern, completion of commercial stake sale will reduce the leverage materially.


Outlook


Performance in new geographies, future scalability and leverage would be key monitorables going forward. Maintain BUY with TP of INR375 as annuity book gives us comfort on valuation. However, weak demand and rising yields remains the key risks


For all recommendations report, click here


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First Published on Aug 3, 2018 03:59 pm
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