Kolte-Patil De­vel­op­ers Ltd: Cre­ative builder

Money Times - - News - By Subra­ma­nian Ma­hade­van

(BSE Code: 532924) (CMP: Rs.218.20) (FV: Rs.10)

Pune-based Kolte-Patil De­vel­op­ers Ltd (KPDL) is a well-estab­lished real es­tate com­pany and the largest devel­oper of In­dia which has com­pleted 1 crore sq.ft. of land­mark devel­op­ments in Pune and Bengaluru in the last 25 years. It has built projects in mul­ti­ple seg­ments such as res­i­den­tial, com­mer­cial, re­tail, IT parks and in­te­grated town­ships and is now work­ing on some up­scale re­de­vel­op­ment projects in Mumbai. Its fu­ture out­look re­mains strong con­sid­er­ing its

lead­er­ship po­si­tion in Pune (which has strong em­ploy­ment/eco­nomic driv­ers and a large end-user de­mand), proven ex­e­cu­tion skills, com­fort­able debt lev­els and higher con­tri­bu­tion from as­set-light Mumbai projects. KPDL raised ~Rs.275 crore through its IPO in No­vem­ber 2007 at an is­sue price of Rs.135/share with the ob­jec­tive to aug­ment its cap­i­tal base for fund­ing fu­ture growth plans. Its IPO was over­sub­scribed 45 times. Dur­ing Q1FY19, KPDL re­ported 200% higher PAT of Rs.76.25 crore on 59% higher in­come of Rs.390.56 crore. The stock’s risk:re­ward ra­tio is quite fa­vor­able of­fer­ing more up­side po­ten­tial with limited down­side on ac­count of its ex­cel­lent track record of con­sis­tent div­i­dend pay­outs, high pro­moter stake and a man­age­able debt on books un­like DLF and HDIL. Its projects un­der de­vel­op­ment as well as projects in the pipeline will gen­er­ate de­cent cash flows and prof­itabil­ity. Buy on ev­ery dip for good re­turns.

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