Prestige Estates Projects Ltd. share price target

Monetisation of completed inventory of ~Rs 28bn remains key. We maintain BUY with Rs 292/sh TP. 3QFY19 Revenue came in at Rs 10.8bn, Rs 1bn lower due to IND AS 115. Margins came in at 31.9% (vs 20.0/27.7% YoY/QoQ). PEPL had deliveries of 7mn sqft in 3QFY19 alone (record deliveries of ~24mn sqft in 9MFY19, 141% ahead of full year guidance) leading to total unrecognized revenue of ~130bn, incl. ~Rs 75bn of earlier reversals (re-recognition over 2.5-3 years).

We maintain BUY with Rs 309/sh TP PEPL reported 2QFY19 revenue of Rs 13.2bn, 49% ahead of estimates. APAT came in at Rs 968mn (234% ahead of estimates). Impact of IND AS 115: higher revenue by Rs ~1.3bn and higher net profit by Rs 543mn. PEPL delivered 12.1mn sqft in 2QFY19 alone (~17.1mn sqft in 1HFY19, which is 71% ahead of guidance and this has resulted in strong revenue recognition).

Due to the recent price correction, we upgrade PEPL from NEU to BUY with a NAV-based TP of Rs 316/sh. 1QFY19 Revenue came in at Rs 8.6bn. The prior quarters are not comparable due to 1st time adoption of IND AS 115. Impact (1QFY19): Lower revenue by Rs 1.7bn and higher net profit by Rs 23mn). Even as 1mn sqft was launched in 1QFY19 in Chennai and Bangalore, PEPLs share of pre-sales decreased QoQ to 1.1mn sqft (vs 1.6mn sqft QoQ).

Robust pre-sales; debt rises on stake buyback Prestige Estates (PEPL) reported robust operations as company benefitted from projects launched in 4QFY18. Pre-sales volume was at 1.11msf and sales value at INR 7.6bn (+69% YoY) during the quarter. Completed inventory declined by 0.67msf during the quarter (60% of sales). Collection from residential segment was reported at INR 7.5bn (vs. INR 8.0bn quarterly average). PEPL has shifted to completion method of accounting under Ind AS 115. Net debt increased by INR 8.2bn to INR 72.8bn primarily on CapitaLand stake acquisition (INR 3.4bn) and consolidation of INR 2.8bn debt related to the acquisition. While the increase in...

Q3FY18 reported revenue grew by 3% YoY, while PAT grew by 34% due to higher realisation. Given Bangalores better affordability compared to peers (Mumbai/NCR), we continue to maintain a positive view on Bangalore-based developer PEPL....

We maintain NEU with a NAV-based TP of Rs 316/sh. Prestige Estates Projects Ltd. (PEPL) delivered inline 3QFY18 performance with revenues/EBIDTA/PAT coming in 8.1/1.7/4.2% ahead of our estimate. Despite no new project launch, PEPL reported gross pre-sales of 1.0mn sq ft/Rs 6.7bn in value (realisation of Rs 6,869/sq ft). Gross Volume/value declined 15.5/16.4% QoQ respectively.

We maintain NEU with a NAV-based TP of Rs 281/sh. Prestige Estates Projects Ltd. (PEPL) delivered 2QFY18 net profit beat of 13.3%. This was on account of lower minority share, depreciation and taxes. Despite no new launches, PEPL reported robust gross pre-sales of 1.16mn sq ft/Rs 8bn in value (realisation of Rs 6,934/sq ft). Volume/value improved 26.1/35% QoQ respectively.

Prestige Estates Projects Ltd. (PEPL) delivered 4QFY17 Net Profit beat of 73.3%. This was on account of robust completions and higher POCM. The impact of demonetization seems to be waning with PEPL reporting robust pre-sales of 0.73mn sqft with ~Rs5.2bn in value (realization of Rs7,190/sqft). The volume/value improved 32.7 /51.5% QoQ.

Prestige Estates Projects Ltd. (PEPL) delivered 2QFY17 Revenue, EBIDTA & Net Profit, 10.6/6.2/15.6% ahead of our estimate. Prestige Falcon City (26.6% of revenue) and Lakeside Habitat (10.2% of revenue) were key revenue drivers. The impact of demonetization would reflect in 2HFY17E. Accordingly, we have re-calibrated our pre-sales and FY17-18E EPS estimate 19-31% lower.

we continue to like Prestige Estates Projects Ltd (PEPL) due to its strong annuity income stream (exit rental of Rs 5.4 bn). Further, PEPL's operations are concentrated in Bangalore, which we believe will recover faster driven by strong commercial absorption (12-13 msf p.a.), resulting in steady r..