EdelFlash: Kolte-Patil Developers - Adds Three New Redevelopment Projects ... :: Edelweiss report

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->

Kolte-Patil Developers (KPDL) has announced addition of 3 projects via the society redevelopment platform in Mumbai offering saleable area of ~0.3msf. We expect the projects to be launched over the next 12-18 months. We expect the company to achieve total sales value of ~INR5.0bn across the projects (assuming 90% of additions in project area in North Western suburbs of Goregaon and Malad), which implies EBIT of ~INR1.0bn at margins of 20% (estimate based on current industry trends). The company now has totally 6 projects across ~0.6msf in Mumbai. While it continues to focus on the society redevelopment platform for expansion in Mumbai, we believe execution challenges are likely to emerge if KPDL acquires over 10-12 projects, given that Mumbai is a new foray for the company. The above development is a directional positive and expected to add ~INR5/share to our NAV estimate of INR201/share.

Event: KPDL has announced addition of 3 projects to its portfolio in Mumbai via the society redevelopment platform. The 3 projects, having saleable area of ~0.3msf, are located in the Western suburbs of Khar (W), Malad (W) and Goregoan (W). We estimate that ~90% of the project area additions are in Goregaon-Malad. We expect the projects to be launched over next 12-18 months.

Analysis: With KPDL’s share of saleable area across the 3 projects at ~0.3msf, we expect it to achieve total sales value of ~INR5.0bn, implying EBIT of ~INR1.0bn at margins of 20% (estimate). The company now has 6 projects across ~0.6msf in Mumbai. While it continues to focus on the society redevelopment platform for expansion in Mumbai, we believe execution challenges are likely to emerge if KPDL acquires over 10-12 projects, given that Mumbai is a new foray for the company.

LINK
https://www.edelweiss.in/research/EdelFlash-Kolte-Patil-Developers--Adds-Three-New-Redevelopment-Projects-in-Mumbai/28022.html