Puravankara has a strong brand and a proven record. Citi has initiated coverage on the stock with a Buy/Medium Risk rating and a target price of Rs536, based on a 5% discount to estimated core NAV of Rs564. The discount to the stock for the company's over dependence on Bangalore (~73% of Gross NAV) and residential projects. [Citi doesn't discount DLF and Unitech though they are over dependent on Delhi NCR region, which doesn't have as much growth potential as Bangalore has]
Quality landbank of 107m sq ft, largely within the city limits of Bangalore; A direct sales model, which tends to reduce speculative activity; and in-house construction expertise. These factors should drive a 3-year EPS CAGR of 65%, positioning it as a quality midscale.
Most houses in Bangalore are sold in the range of Rs 3,000 to Rs 3,500 / sft in Bangalore. [Less than Guragon Rs 4,000 to Rs 4,500 / sft] Bangalore has 978 IT Companies employing 341,374 people. Delhi / NCR has 633 IT companies employing 282,708 folks.
No comments:
Post a Comment