Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
W e a k n e s s i n v o l u m e o f f t a k e p e r s i s t s …
Orbit reported another disappointing quarterly performance with weak
presales volumes, slower execution and lower margins. Pre-sales
volumes remained weak at 9,034 sq ft (lowest in the last 11 quarters) in
Q2FY12 vs. 9,985 sq ft in Q1FY12, reflecting the weak buyer’s sentiments.
The management has indicated pickup in volume offtake and execution
from Q4FY12 with improvement on the regulatory front. However, we
maintain HOLD rating on the stock given the weak volume offtake in
Mumbai and challenging funding environment for the industry.
ƒ Disappointing performance
Orbit reported a topline of | 103.4 crore vs. our expectation of | 82.6
crore as | 50 crore of revenues were booked for Ocean Parque
property sales. The OPM at 33.6% was much lower than our estimates
of 43.8% on account of higher expenses charged against the Ocean
Parque revenues.
ƒ Management expects pre-sales of ~65,000 sq ft in FY12
The management has indicated that it expects pre-sales volumes of
~65,000 sq ft in FY12 (guided 1, 30,000 sq ft at the beginning of FY12).
This implies pre-sales volumes of ~46,000 sq ft in H2FY12 where they
are looking to book ~ 20,000 sq ft from Andheri Project, ~15,000 sq ft
from Orbit Terraces and the rest from Orbit Laburnum, which Orbit is
looking to launch in Q4FY12.
ƒ Ocean Parque money, WTC collection key for cash flows going ahead
Orbit has so far collected | 50 crore from Ocean Parque out of its share
of | 115 crore (sold it for | 235 crore in Q1FY12). The remaining
amount of | 65 crore is expected after the settlement with the tenants.
Additionally, it is looking to collect ~| 80 crore from Orbit WTC in
FY12E. We believe these collections would hold the key for Orbit
considering its stretched cash flow situation.
V a l u a t i o n
At the CMP, the stock is trading at 0.4x FY13 P/BV. We maintain our HOLD
recommendation on the stock and value the stock at | 38 (0.6x its NAV of
| 63), given the weak volume offtake in Mumbai and challenging funding
environment for the industry. We expect a pick-up in pre-sales volume to
hold the key for the stock price performance, going ahead.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
W e a k n e s s i n v o l u m e o f f t a k e p e r s i s t s …
Orbit reported another disappointing quarterly performance with weak
presales volumes, slower execution and lower margins. Pre-sales
volumes remained weak at 9,034 sq ft (lowest in the last 11 quarters) in
Q2FY12 vs. 9,985 sq ft in Q1FY12, reflecting the weak buyer’s sentiments.
The management has indicated pickup in volume offtake and execution
from Q4FY12 with improvement on the regulatory front. However, we
maintain HOLD rating on the stock given the weak volume offtake in
Mumbai and challenging funding environment for the industry.
ƒ Disappointing performance
Orbit reported a topline of | 103.4 crore vs. our expectation of | 82.6
crore as | 50 crore of revenues were booked for Ocean Parque
property sales. The OPM at 33.6% was much lower than our estimates
of 43.8% on account of higher expenses charged against the Ocean
Parque revenues.
ƒ Management expects pre-sales of ~65,000 sq ft in FY12
The management has indicated that it expects pre-sales volumes of
~65,000 sq ft in FY12 (guided 1, 30,000 sq ft at the beginning of FY12).
This implies pre-sales volumes of ~46,000 sq ft in H2FY12 where they
are looking to book ~ 20,000 sq ft from Andheri Project, ~15,000 sq ft
from Orbit Terraces and the rest from Orbit Laburnum, which Orbit is
looking to launch in Q4FY12.
ƒ Ocean Parque money, WTC collection key for cash flows going ahead
Orbit has so far collected | 50 crore from Ocean Parque out of its share
of | 115 crore (sold it for | 235 crore in Q1FY12). The remaining
amount of | 65 crore is expected after the settlement with the tenants.
Additionally, it is looking to collect ~| 80 crore from Orbit WTC in
FY12E. We believe these collections would hold the key for Orbit
considering its stretched cash flow situation.
V a l u a t i o n
At the CMP, the stock is trading at 0.4x FY13 P/BV. We maintain our HOLD
recommendation on the stock and value the stock at | 38 (0.6x its NAV of
| 63), given the weak volume offtake in Mumbai and challenging funding
environment for the industry. We expect a pick-up in pre-sales volume to
hold the key for the stock price performance, going ahead.
No comments:
Post a Comment