HDFC Securities is bullish on Prestige Estates Projects has recommended buy rating on the stock with a target price of Rs 300 in its research report dated November 13, 2020.
HDFC Securities' research report on Prestige Estates Projects
PEPL 2QFY21 financial performance was ahead of our estimates with revenue/EBITDA/APAT beat of 27/15/90%. The pre-sales and collections have come back to pre-COVID levels. Share of completed high-value inventory in pre-sales stood at 59% for 2QFY21. PEPL expects to maintain similar momentum for 2HFY21 with six new launches. The annuity portfolio monetisation will yield about Rs 91.6bn with inflow expected by Dec-20. About Rs 50bn will go towards debt retirement and balance Rs 35-37bn post refundable deposit/taxes shall be deployed towards Capex assets. PEPL has entered a new Capex cycle, and rerating would be a longer wait.
We roll forward our NAV to Dec-21 and maintain BUY on PEPL with an increased SOTP of Rs 300/sh.
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