Kolte-Patil shares jump 8% after Motilal Oswal initiates coverage
Kolte Patil Developers Ltd (KPDL), with a ‘buy’ recommendation and a target price of Rs 700, signaling a potential 34% upside from current levels.
In reaction to the coverage, the stock jumped nearly 8% to Rs 569.
Steady performance, healthy balance sheet, robust growth in the Mumbai Metropolitan Region (MMR) and a strong pipeline to propel growth can be attributed to MOSL’s positive outlook on the realty stock.
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As per a report, during the fiscal years 2021 to 2023, KPDL experienced a notable resurgence following a period of stagnation, achieving a commendable 36% CAGR in pre-sales, which primarily can be attributed to several strategic factors, including an enhanced demand landscape post-Covid, an expansion in the number of launches for society redevelopment projects within the MMR, and the implementation of a diversified product approach within its township endeavor, 'Life Republic'.
Notably, these initiatives, particularly heightened focus on Pune, facilitated a substantial increase in pre-sales, reaching a milestone figure of Rs 2,200 Crore over the aforementioned fiscal period.
“After a decade of muted performance, KPDL has experienced robust growth in pre-sales and with a strong pipeline in place, it is anticipated that the company can sustain a 25% CAGR in pre-sales for at least the next two years, with potential for further growth through new project additions,” the broker said.
Analyst Pritesh Sheth of Motilal
