Motilal Oswal is bullish on Indiabulls Real Estate (IBREL) and has recommended buy rating on the stock with a target of Rs 190 in its July 25, 2011 research report.
“Indiabulls Real Estate (IBREL) EBITDA margins fell ~500bp sequentially to 12.4% in 1QFY12. EBITDA grew 39% YoY to INR301m and revenue rose 41% YoY to INR 2.4b. The decline in EBITDA margins can be attributed to a combined impact of a change in revenue-mix and inflation. Net profit grew 221% YoY to INR660m, led by a jump in other income to INR 1.4b. The one-off other income was due to maturity of liquid investment in mutual funds. In 1QFY12, IBREL's residential sales fell for the second successive quarter. It sold ~0.8msf (v/s 1.2msf in 4QFY11) sales in ongoing projects, amounting to ~INR 3.8b (v/s INR 5.6b in 4QFY11). Cumulative sales of ongoing projects were INR 65b (~9.2msf) v/s INR 61b (~8.4msf) in 4QFY11.”
“Leasing momentum was steady at IBREL's IPIT commercial properties in Mumbai with ~0.17msf of new leasing in 1QFY12, leading to total leased area of 1.8msf. Recent leasing at Indiabulls One was at INR 175/square foot, and average prevailing lease rental at Indiabulls Finance Centre was INR 125-140/square foot. IBREL is available at a 52% discount to our one-year forward NAV estimate of INR 237 and trades at 0.5x FY13E BV of INR 242 and 14.6x FY13E EPS of INR 7.9. Maintain Buy for a target price of Rs 190,” says Motilal Oswal research report.
“Indiabulls Real Estate (IBREL) EBITDA margins fell ~500bp sequentially to 12.4% in 1QFY12. EBITDA grew 39% YoY to INR301m and revenue rose 41% YoY to INR 2.4b. The decline in EBITDA margins can be attributed to a combined impact of a change in revenue-mix and inflation. Net profit grew 221% YoY to INR660m, led by a jump in other income to INR 1.4b. The one-off other income was due to maturity of liquid investment in mutual funds. In 1QFY12, IBREL's residential sales fell for the second successive quarter. It sold ~0.8msf (v/s 1.2msf in 4QFY11) sales in ongoing projects, amounting to ~INR 3.8b (v/s INR 5.6b in 4QFY11). Cumulative sales of ongoing projects were INR 65b (~9.2msf) v/s INR 61b (~8.4msf) in 4QFY11.”
“Leasing momentum was steady at IBREL's IPIT commercial properties in Mumbai with ~0.17msf of new leasing in 1QFY12, leading to total leased area of 1.8msf. Recent leasing at Indiabulls One was at INR 175/square foot, and average prevailing lease rental at Indiabulls Finance Centre was INR 125-140/square foot. IBREL is available at a 52% discount to our one-year forward NAV estimate of INR 237 and trades at 0.5x FY13E BV of INR 242 and 14.6x FY13E EPS of INR 7.9. Maintain Buy for a target price of Rs 190,” says Motilal Oswal research report.
No comments:
Post a Comment