Maintain 'buy' on Prestige Estate - TP hiked to Rs.123 - Geojit BNP Paribas Financial Services Limited

- Buy rating on Prestige Estate is maintained with an increased target price of Rs.123. Eralier target price was Rs.114.

- Company has reported consolidated result for FY12. Revenue at Rs.1090 crore is 33% lower yoy due to execution delays at the White Meadows and Tech park projects.

- EBITDA margin at 31% missed market expectations.

- Operational metrics remain strong. Sold 1.3 million sq ft of residential area in 4QFY12, as against 0.2 million sq ft in 4QFY11 and 0.9 million sq ft in 3QFY12.

- For FY12, contracted sales is at 4.6 million sq ft and contracted sales value at Rs.1930 crore against Rs.1080 crore for FY11.

- Net debt increased by Rs. 180 crore qoq due to capex on office and hospitality assets.

- Company's earnings are expected to increase significantly in FY13.

- For FY13, the company has guided revenue recognition of Rs.1500- 1600 crore, contracted sales of Rs.2500 - 2600 crore and EBITDA margin of 30 - 35%.

- Company is increasing stake in Cessna Business park to 85% from the current 60%.

- Average sales price (ASP) in 4QFY12 at Rs. 4871/ sq ft has increased 10% qoq.

- Plans to launch additional 9.75 million sq ft of projects in FY13 in which the company's share is expected to be 5.6 million sq ft.

Source : Equity Bulls

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