Prestige Estates Projects Ltd - Strong performance continues - Emkay

Reco: ACCUMULATE
CMP: Rs 125
Target Price: Rs 180

- PEPL sold 1.77msf in Q1FY14 for Rs 10.2bn, higher than our est. and 27% of its FY14 target. Co. leased 0.16msf in the qtr. Rental income up by Rs 9mn QoQ to Rs 572mn

- Collections at Rs 6.1bn up QoQ from Rs 5.3bn. OCF ex. L&A at Rs 2.1bn vs. Rs 1.3bn QoQ. PEPL spent Rs 1.75bn towards capex and Rs 1.9bn for land acquisitions in Q1FY14

- SA Debt increases by 192mn QoQ, while consolidated net debt increase by Rs 2.75bn QoQ. We expect another Rs 1.0bn increase in debt in FY14 due to capex & land acquisitions

- Downgrade TP by 12% on increase in discount rate and cap rate due to steep increase in 10-year G-sec yield QoQ. Maintain Accumulate rating.

Source : Equity Bulls

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