Prestige Estates Projects Ltd - Q4 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs 404, Upside: 40%)

- PEPL achieved pre-sales of 2.76msf (-7%QoQ/35%YoY) for Q4FY21 which took tally for whole year to 8.16msf (25%YoY) and translates in sales value of Rs18.5bn (-9%QoQ/53%YoY) for Q4FY21 and Rs54.6bn (20%YoY) FY21 respectively. PEPL collected Rs50.8bn (9%YoY) for FY21.

- With Blackstone's Phase-1 transaction PEPL has deleveraged its balance sheet and net debt stands at Rs13.1bn and net D/E came down by 84% to 0.19x which is further expected to come down and PEPL to be net cash positive by Rs10bn once Phase-2 is executed.

- PEPL's plans to build 44.5msf annuity asset and 6 hospitality which will yield annual rental over Rs23bn and Rs7.9bn respectively by FY26 remains intact with maintaining D/E below 0.5x. We have recalibrated our numbers for new project addition and higher deleveraging than our expectation and SoTP based NAV inches up to be Rs621/share (WACC 11.3%, Cap rate 9% and 15x EV/EBITDA FY22) while bulls case NAV is Rs679/share. We maintain our BUY rating with TP of Rs404/share (35% discount to Rs621/share considering demand risk).

Shares of PRESTIGE ESTATES PROJECTS LTD. was last trading in BSE at Rs.295.95 as compared to the previous close of Rs. 287.65. The total number of shares traded during the day was 70570 in over 2012 trades.

The stock hit an intraday high of Rs. 299.05 and intraday low of 290. The net turnover during the day was Rs. 20941201.

Source : Equity Bulls

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