Axis Direct's research report on Prestige Estates Projects
Despite tepid pre-sales (due to lower new launches) of Rs 6.4 bn (company’s share: Rs 5.1 bn), Prestige Estates Projects (PEPL) maintained its FY17 pre-sales guidance of Rs 35-40 bn on its strong launch pipeline. Management has been prudent in launching projects only after securing all requisite approvals, complying with RERA*. Collections improved sharply to Rs 10 bn (vs. Rs 8.6 bn in Q4) as PEPL sped up execution – completed 4 projects (including 2 large projects Tranquility and Bellavista) in Q1.
Percentage of FY16 guidance achieved: Sales: 18%, collections: 29%, completion: 67%, new launches: 20%, new leasing: 10%, exit rentals of Rs 5.2 bn vs. Rs 6-6.25 bn targeted. PEPL seems to be on track to achieve most of its operating guidance. Maintain BUY with TP of Rs 233.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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