HDFC Securities Bullish On This Small Cap Real Estate Stock, Buy For 48% Strong Gains, Rallies 5.07%

HDFC Securities in its recent report on Kolte Patil Developers Ltd. (KPDL) recommends "Buy" on the stock with a target price of Rs 380/share. If purchased at the current market price, it can fetch up to 48% gains. KPDL is a small-cap company that operates in the Real Estate sector. It has a market capitalisation of Rs 1,960.91 crore.

Stock Performance and Returns Over The Past 5 Years

The shares of KPDL last traded at Rs 258/share, up 5.07% from the previous close of Rs 245.55/share. It traded the 52 week low on 29 June 2022 at Rs 214.50/share and 52 week high on 20 October 2022 at Rs 383.90/share, respectively.

The stock performed well in the past 1 week, gaining 5.87%. However, it declined by 8.27% in 1 month. In 1 year, it gave 12.14% negative return. In 3 years it gave 115.27% positive return. In 5 years it gave 20.93% negative return.

Premiumisation to drive the next leg of growth, Buy for a target price of Rs 380/share

HDFC Securities said, "We attended the Kolte Patil (KPDL) analyst meet in Pune where it showcased a few of its projects including its flagship township project - Life Republic (LR), its premium project 24K (fully sold-out) and one of its affordable projects Little Earth (a brownfield acquisition of stalled project)."

It added, "In summary, KPDL is targeting a higher mix of premium projects (under 24K brand) and higher sale volume affordable housing in LR, Little Earth and other projects; it expects to generate enough cash flow through this mix to support its annual Business Development (BD) capex of INR 4-5bn which is INR 25-30bn worth of GDV. Also, KPDL is expected to achieve INR 27bn presales in FY24, helped by robust priority launches of INR 57bn. We remain constructive on the KPDL growth story and maintain BUY, with an unchanged SOTP-based TP of INR 380."

Disclaimer - The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.