Name: Latest research reports of Kolte-Patil Developers Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Kolte-Patil Developers Ltd.
Rating: 5
Author: HDFC Securities

Kolte Patil Developers (3QFY20): Pre-sales robust, collections stable. Maintain BUY

Buy: Kolte-Patil Developers Ltd.

Target

HDFC Securities

Buoyed by the response to the promotional campaign at Life Republic, KPDL recorded robust pre-sales enabling the company to stay on track for its pre-sales target for FY20E. Though lack of new launches during 2HFY20 is a dampener, KPDL has a strong launch pipeline across Mumbai and Pune for FY21E with 3 commercial projects slated for launch in Pune. Mumbai and Bengaluru continue to be key markets for the company outside of its home base. We derive comfort from large part of KPDL portfolio being affordable and mid-income segment. We remain constructive and maintain BUY. Key monitorables: (1) Aggressive competition in home market, (2) Leverage position. KPDL financial performance under POCM was ahead of our estimates. Pre sales picked up in 3QFY20 after a weak 2QFY20. Stable collections and Net D/E within acceptable limits are other key positives. Maintain BUY with revised TP of Rs 310/sh.