Puravankara: After 235% gain in last 1 year, Yes Securities sees another 86% upside in this realty stock – 5 reasons why
₹452, indicating an upside of over 86 percent from its current market price of ₹242.60. Yes Securities initiated the rating on Puravankara Ltd (PURVA) based on the following factors: (1) Presales to grow at 20 percent CAGR over FY23-26E, (2) Debt and debt coverage well under control, (3) Strong execution track record over the decade, (4) Strong P&L (profit and loss) recognition expected in next 5-7 years, (5) Paradigm shift in focus following onboarding of new CEO.
Given multibagger returns in the last 1 year, the stock has jumped over 32 percent in 2024 YTD with positive returns in 2 and negative in the remaining 2 of the 4 months this year so far. It rose 18 percent in April so far after a 12.13 percent decline in March and an 8.12 percent decline in February.
Meanwhile, it rallied 39 percent in January this year. Before declining in February, the stock had given positive returns for 10 straight months between April 2023 and January 2024.
In this period, the stock soared 297.5 percent. The stock has also advanced almost 235 percent from its 52-week low of ₹72.50, hit on April 4, 2023, meanwhile, it is still 10 percent away from its 52-week high of ₹269.15, hit on January 30, 2024. Presales to grow at 20 percent CAGR over FY23-26E: As per the brokerage, PURVA is poised to achieve significant presales totaling approximately 10.08 million square feet (msf) from Q4FY24 to FY26E, leveraging the available unsold area of 13.14 msf across ongoing projects, including those not yet open for sale.
With 11.55 msf of projects currently under various stages of approval, anticipated for launch within the next 9-12 months, PURVA is expected to add incremental presales of 5.72 msf during the same period, it predicted. The company also
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