Buy Prestige Estates; target Rs 182: Motilal Oswal
Brokerage house Motilal Oswal is bullish on Prestige Estates Projects (PEPL) and has recommended buy rating on the stock with a target price of Rs 182, in its research report dated August 23, 2013.
December 03, 2013 / 16:11 IST
Motilal Oswal's research report on Prestige Estates Projects (PEPL)
"PEPL posted negative FCFE of INR7.4b (funded by INR3.5b QIP and INR3.8b increase in net debt) due to high annuity capex and land advances of INR4.8b each. While we expect FCFE to remain negative in FY14E-15E, the magnitude is likely to tend towards breakeven by FY16E, with the completion of multiple annuity assets and further improvement in collections. For FY14E, we model for (1) pre-sales of INR36b (IRR10.2b done in 1QFY14), (2) INR23b collections (INR6b in 1QFY14), (3) annualized rental of INR3.5b and (4) INR18b Dev Co POCM revenue (~30 percent YoY). Backed with strong operations, cash flow visibility and valuation support, we maintain PEPL as our preferred pick. The stock trades at a PE of 8.8x FY15E EPS, 1.2x FY15E BV and 42 percent discount to our NAV of INR202. Maintain Buy with a target price of INR182," says Motilal Oswal research report.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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