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    Buy Kolte-Patil Developers, target price Rs 350: HDFC Securities

    Synopsis

    Kolte-Patil Developers Ltd., incorporated in the year 1991, is a Small Cap company (having a market cap of Rs 1909.99 Crore) operating in Real Estate sector.

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    Promoters held 74.45 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.44 per cent, DIIs 4.23 per cent.
    HDFC Securities has buy call on Kolte-Patil Developers with a target price of Rs 350. The current market price of Kolte-Patil Developers is Rs 252. Time period given by analyst is one year when Kolte-Patil Developers Ltd. price can reach defined target.

    Kolte-Patil Developers Ltd., incorporated in the year 1991, is a Small Cap company (having a market cap of Rs 1909.99 Crore) operating in Real Estate sector.

    Kolte-Patil Developers Ltd. key Products/Revenue Segments include Income from Sale of Commercial Flats, Shops & Plots, Project Management Fees and Other Operating Revenue for the year ending 31-Mar-2021.


    Financials
    For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 380.99 Crore, up 55.70 % from last quarter Total Income of Rs 244.70 Crore and up 26.00 % from last year same quarter Total Income of Rs 302.38 Crore. Company reported net profit after tax of Rs 29.20 Crore in latest quarter.
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    Investment Rationale
    KPDL reported its Q4FY22 presales of 0.8msf (-8.2%/-9.3% YoY/QoQ), valued at INR 5bn (-2%/-10.7% YoY/QoQ), with average realisation of INR 6,418 per sq. ft. (+7.2%/-1.1% YoY/QoQ). With this, its FY22 presales volume came in at 2.7msf (+30.3% YoY; exceeding its FY22 guidance of 2.5msf), valued a INR 17.4bn (+44.8% YoY), with average realisation of INR 6,407 per sq. ft. (+10.8% YoY). In value terms, the contribution of non-Pune sales was ~31%, similar to previous quarter. Over the next few quarters, KPDL has a robust launch pipeline of ~5.4msf, with a top line potential of INR 46bn. KPDL is evaluating business development (BD) pipeline with INR 70bn GDV in Pune (65%), Mumbai and Bengaluru (35%). Net D/E reduced further to 0.14x (0.19x as on Dec-21). Given the comfortable liquidity position, KPDL can further acquire land bank, paving the way for accelerated BD activities. The brokerage maintains BUY, with a reduced TP of INR 350 (Mar-24E) to factor in higher cost of capital and WACC.

    Promoter/FII Holdings
    Promoters held 74.45 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.44 per cent, DIIs 4.23 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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