HDFC Securities' research report on Prestige Estates Projects
PEPL pre-COVID rerating was backed by robust expansionary plans on asset build-out and likely deleveraging through REIT, but COVID-19 has now put a spanner in the wheel. As such, FY21E residential collections will remain subdued, and headwinds like work from home and retail footfall/hotel occupancy normalisation will take time. PEPL continues to evaluate monetisation opportunities in the rental business and potential REIT listing over the medium term. Labour availability has now ramped up to ~65%, with normalisation expected by 3QFY21.
We maintain BUY on PEPL with an SOTP of Rs 280/sh. No change in FY21/22 estimates.
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