Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IBREL reported Q1 FY12 revenue of Rs2.4bn and net
profit of Rs660m, up 41% and 221% yoy, respectively.
On a qoq basis top line and EBITDA margin
disappointed, while net profit was boosted by one-time
income of Rs1.4bn from liquid investments.
Sales slowed down to 0.78m sq ft (vs 1.5m sq ft/quarter
for FY11) due to a sluggish property market. At IPIT,
construction and leasing remained robust with lease
addition of 0.2m sf ft.
Maintain earnings, price target and OUTPERFORM
Top line disappoints. Q1 FY12 revenue of Rs2.4bn was
up 41% yoy but down 56% qoq, bucking three quarters of
strong sequential growth. Net profit was up sharply, 221%
yoy and 281% qoq to Rs660m primarily due to Rs1.4bn
other income from dividends. EBITDA margin dropped to
12% from 22% in FY11, due to a lower sales base.
Sale momentum slowing. It booked Rs2.4n or 0.78m sq ft
in Q1 FY12 (vs 1.5m sq ft/ quarter for FY11). Management
attributes drop in sales to the soft property market. The
company expects sales momentum to pick up with launch of
big-ticket properties in Worli and Savroli (near Panvel). It
maintains 30% revenue and earnings growth guidance for
FY12E. We believe launch and sales of IBREL’s super
luxury Blue project in Worli in the coming months is critical
to sales and earnings guidance.
IPIT showing strong momentum. 3.1m sq ft of office
space is constructed (0.2m sq ft remaining) with 1.8m sq ft
cumulatively leased out (0.2m sq ft addition in Q1 FY12).
We expect the strong lease momentum to continue.
Other highlights. In the current quarter, the company
added 2.6m sq ft of projects to its construction portfolio.
Further, promoter stake has increased by another 5% to
27% in the quarter. Debt has reduced significantly to
Rs11bn from Rs16bn as the company paid back short-term
debt from its cash reserve.
Valuation at steep discount. IBREL continues to trades at
0.52 NAV, 0.5x P/B and 19x PE for FY12E. We expect
earnings CAGR of 33% over FY11/14E. We maintain OP
and price target of Rs166/sh, given the discounted
valuations and balance sheet clean-up post the Indiabulls
Power de-merger.
NAV summary and valuation (Rs m)
Base case
IPIT value 25,004
Worli Bleu 16,049
Real estate projects 33,761
Real estate NAV 74,815
Net debt 9,094
Equity NPV 65,721
Terminal value 2,371
Real estate NAV 68,091
Discount to NAV 25%
Real estate value 51,068
Power business NAV 23,742
Discount to NAV 15%
Power business value 20,181
Cumulative NPV 71,249
Price target (Rs) 166
Source: Standard Chartered Research
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IBREL reported Q1 FY12 revenue of Rs2.4bn and net
profit of Rs660m, up 41% and 221% yoy, respectively.
On a qoq basis top line and EBITDA margin
disappointed, while net profit was boosted by one-time
income of Rs1.4bn from liquid investments.
Sales slowed down to 0.78m sq ft (vs 1.5m sq ft/quarter
for FY11) due to a sluggish property market. At IPIT,
construction and leasing remained robust with lease
addition of 0.2m sf ft.
Maintain earnings, price target and OUTPERFORM
Top line disappoints. Q1 FY12 revenue of Rs2.4bn was
up 41% yoy but down 56% qoq, bucking three quarters of
strong sequential growth. Net profit was up sharply, 221%
yoy and 281% qoq to Rs660m primarily due to Rs1.4bn
other income from dividends. EBITDA margin dropped to
12% from 22% in FY11, due to a lower sales base.
Sale momentum slowing. It booked Rs2.4n or 0.78m sq ft
in Q1 FY12 (vs 1.5m sq ft/ quarter for FY11). Management
attributes drop in sales to the soft property market. The
company expects sales momentum to pick up with launch of
big-ticket properties in Worli and Savroli (near Panvel). It
maintains 30% revenue and earnings growth guidance for
FY12E. We believe launch and sales of IBREL’s super
luxury Blue project in Worli in the coming months is critical
to sales and earnings guidance.
IPIT showing strong momentum. 3.1m sq ft of office
space is constructed (0.2m sq ft remaining) with 1.8m sq ft
cumulatively leased out (0.2m sq ft addition in Q1 FY12).
We expect the strong lease momentum to continue.
Other highlights. In the current quarter, the company
added 2.6m sq ft of projects to its construction portfolio.
Further, promoter stake has increased by another 5% to
27% in the quarter. Debt has reduced significantly to
Rs11bn from Rs16bn as the company paid back short-term
debt from its cash reserve.
Valuation at steep discount. IBREL continues to trades at
0.52 NAV, 0.5x P/B and 19x PE for FY12E. We expect
earnings CAGR of 33% over FY11/14E. We maintain OP
and price target of Rs166/sh, given the discounted
valuations and balance sheet clean-up post the Indiabulls
Power de-merger.
NAV summary and valuation (Rs m)
Base case
IPIT value 25,004
Worli Bleu 16,049
Real estate projects 33,761
Real estate NAV 74,815
Net debt 9,094
Equity NPV 65,721
Terminal value 2,371
Real estate NAV 68,091
Discount to NAV 25%
Real estate value 51,068
Power business NAV 23,742
Discount to NAV 15%
Power business value 20,181
Cumulative NPV 71,249
Price target (Rs) 166
Source: Standard Chartered Research
No comments:
Post a Comment