With a balance launch pipeline of ~5.5mn sqft in residential segment and ~2mn sqft in commercial segment for 2HFY20, the company remains well on track to achieve the pre-sales guidance of ~4mn sqft in residential sales and ~3mn in pre-leases for FY20E. The quarter witnessed improvement in collections (+15% QoQ). Mid-income and affordable segments are expected to drive residential sales with ~86% of BEL new launches in the affordable housing segment. Though the company expects to conclude the divestment in hospitality business by 4QFY20E, divergence in expected valuation may delay the transaction. Whilst pending pre-tax cash flows of Rs 22.9bn from real estate projects should cover the capex requirement of Rs 10.7bn primarily towards commercial projects, timing mismatch could result in further increase in D/E ratio. We maintain NEUTRAL. Key monitorable: (1) Leasing velocity in Bengaluru and Chennai SEZ projects and (2) Timeline for conclusion of hospitality business divestment. We maintain NEU on BEL with a SOTP-based TP of Rs 191/sh. Strong leasing in two SEZs and robust residential pre-sales were key positive. Likely hospitality asset monetization during 4QFY20 augurs well for balance sheet.