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Results in‐line, margins improve: Peninsula Land (PLL) reported revenues of
Rs1,179m (53% YoY decline, 4% QoQ decline) consisting mainly of revenue
recognition from Peninsula Business Park on account of execution progress and
partly from Swan Mills. As the company has a limited inventory, revenues have been
witnessing a decline. Margins improved to 44% this quarter as against 41% in
Q2FY11 and 38% in Q3FY10.
Lack of inventory leads to depressed sales: Since most of the company projects are
complete, fresh sales during the quarter were subdued. The only sales during the
quarter consisted of 26K sq.ft at its newly launched Nashik project. Further, the
company plans to launch its Goa project in the month of January 2011.
Focusing on land acquisition: PLL has been in an aggressive land acquisition mode
and has therefore successfully acquired five new land parcels during the quarter.
This includes a project in Alibaug, one in Hinjewadi, Pune, one large project in Thane,
one in Lalbaug, Mumbai and one in Bengaluru. During the period 9MFY11, the
company has acquired a total of seven new projects for which it has deployed
~Rs3.5bn and Rs2bn is yet to be paid. Most of these projects are expected to be
launched in the next 6‐9 months.
Outlook & Valuations: With PLL’s aggressive land acquisition onstream, we expect
the company to undertake these new projects by the end of FY12. This shall result in
gradual increase in the company’s activities which have currently slowed down due
to lack of inventory. Further, we expect the company to continue to acquire new
projects. Our estimate of the company’s FY12 NAV stands at Rs69. However, we
have not included the projects acquired by the company during the current quarter.
The company’s debt has increased to Rs8.3bn and its cash balance stands at
Rs6.4bn. Since the company is in the process of acquiring new projects, we are not
attributing a discount to its NAV to arrive at its TP, as cash deployment is expected
to result in an increase in value. We maintain ‘Accumulate’ with a TP of Rs69.
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Results in‐line, margins improve: Peninsula Land (PLL) reported revenues of
Rs1,179m (53% YoY decline, 4% QoQ decline) consisting mainly of revenue
recognition from Peninsula Business Park on account of execution progress and
partly from Swan Mills. As the company has a limited inventory, revenues have been
witnessing a decline. Margins improved to 44% this quarter as against 41% in
Q2FY11 and 38% in Q3FY10.
Lack of inventory leads to depressed sales: Since most of the company projects are
complete, fresh sales during the quarter were subdued. The only sales during the
quarter consisted of 26K sq.ft at its newly launched Nashik project. Further, the
company plans to launch its Goa project in the month of January 2011.
Focusing on land acquisition: PLL has been in an aggressive land acquisition mode
and has therefore successfully acquired five new land parcels during the quarter.
This includes a project in Alibaug, one in Hinjewadi, Pune, one large project in Thane,
one in Lalbaug, Mumbai and one in Bengaluru. During the period 9MFY11, the
company has acquired a total of seven new projects for which it has deployed
~Rs3.5bn and Rs2bn is yet to be paid. Most of these projects are expected to be
launched in the next 6‐9 months.
Outlook & Valuations: With PLL’s aggressive land acquisition onstream, we expect
the company to undertake these new projects by the end of FY12. This shall result in
gradual increase in the company’s activities which have currently slowed down due
to lack of inventory. Further, we expect the company to continue to acquire new
projects. Our estimate of the company’s FY12 NAV stands at Rs69. However, we
have not included the projects acquired by the company during the current quarter.
The company’s debt has increased to Rs8.3bn and its cash balance stands at
Rs6.4bn. Since the company is in the process of acquiring new projects, we are not
attributing a discount to its NAV to arrive at its TP, as cash deployment is expected
to result in an increase in value. We maintain ‘Accumulate’ with a TP of Rs69.
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