Maintain 'buy' on Prestige Estates - TP Rs.208 - Geojit BNP Paribas Financial Services

- Buy rating on Prestige Estates has been maintained with a target price of Rs.208. The stock is currently traded in the range of Rs.180.

- The company has reported better than expected performance for 3QFY13.

- Standalone revenue at Rs.510 crore increased 180% yoy and 96% qoq and revenue was well ahead of analysts' estimates.

- EBITDA margin came at 31.6% as against 35.3% in 2Q and 35.1% in 3QFY12.

- PAT too was ahead of analysts' estimates.

- Strong earnings momentum is expected to continue over the next 2-3 quarters.

- The company sold 1.4 million sq ft of residential and office area in 3QFY13 versus 1 million sq ft in 2QFY12 and 1.6 million sq ft in 2QFY13.

- Consolidated contracted sales value was at Rs.870 crore, which is up 58% yoy and down 19% qoq.

- The company has already achieved its contracted sales guidance of Rs.2500 crore for FY13.

- Net debt largely remained stable at Rs.1800 crore versus Rs.1796 crore in 2QFY13.

- New projects that surpassed revenue recognition threshold were Kingfisher Towers, Tranquility, Parkview and Sunny Side. ASP was flattish qoq and yoy basis.

- Current unrecognized contracted sales stand at Rs.5996 crore, about 6 times of FY12 revenue. Area delivered for 3QFY13 stood at 1.78million sq ft.

Source : Equity Bulls

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