Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Kolte Patil Developers; target of Rs 240: HDFC Securities

HDFC Securities is bullish on Kolte Patil Developers has recommended buy rating on the stock with a target price of Rs 240 in its research report dated August 24, 2020.

August 25, 2020 / 07:48 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Kolte Patil Developers

KPDL reported operationally weak 1QFY21 with pre-sales of 0.31mn sqft (0.67/0.51msf QoQ/YoY), for a presales value of Rs 1.64bn. Life Republic project in Pune continued to garner strong response (45% of pre-sales). Loss of Rs 312mn was driven by fixed cost absorption on lower revenue and low margin projects in mix. COVID-19 shutdown for the most part of April & May-20 also impacted revenue recognition. 1QFY21 collections dipped as expected, and stood at Rs 1.05bn (vs Rs 3.8b/3.6bn QoQ/YoY).


Outlook

We maintain BUY on KPDL as it has a) comfortable liquidity position (Net D/E 0.37x, ready inventory of Rs 2.6bn,) b) strong affordable residential project mix (at average <Rs 5,500/sqft realization) & c) robust launch pipeline (~8-10mn sqft). Proceeds of Rs 450mn (of Rs 910mn total) from strategic land monetisation has kept liquidity from deteriorating. Delay in demand recovery due to Covid-19 is a key risk to our estimates. No change in FY21/22 estimates.

For all recommendations report, 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.

Broker Research
first published: Aug 25, 2020 07:48 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347