Buy Kolte-Patil Developers, target price Rs 480: HDFC Securities

HDFC Securities has a Buy call on Kolte-Patil Developers with a target price of Rs 480. The current market price of Kolte-Patil Developers is Rs 407.55. Kolte-Patil Developers, incorporated in 1991, is a Small Cap company with a market cap of Rs 3089.58 crore, operating in Real Estate sector.

Kolte-Patil Developers' key products/revenue segments include Income from Sale of Commercial Flats, Shops & Plots, Other Operating Revenue, Land and Scrap for the year ending 31-Mar-2023.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 723.20 crore, up 95.84% from last quarter Total Income of Rs 369.28 crore and up 37.04% from last year same quarter Total Income of Rs 527.71 crore. The company has reported net profit after tax of Rs 65.32 crore in latest quarter.

The company's top management includes Mr.Rajesh Patil, Mrs.Sudha Navandar, Mr.Girish Vanvari, Mr.Jayant Pendse, Mr.Achyut Watve, Mr.Umesh Joshi, Mr.Prakash Gurav, Mrs.Vandana Patil, Mr.Nirmal Kolte, Mr.Milind Kolte, Mr.Yashvardhan Patil, Mr.Naresh Patil, Mr.Dhanajay Barve. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 8 crore shares outstanding.

Investment Rationale
Kolte-Patil Developers reported a decent quarter with presales of 0.8msf (-22.3%/-1.2% YoY/QoQ), valued at Rs 6.3 billion (-15.1%/-7.2% YoY/QoQs), translating to an average realisation of Rs 7,888 psf (+9.3%/-6.0% YoY/QoQ). In FY25, KPDL launched projects worth Rs 40 billion (vs guidance of Rs 50 billion), with the miss largely attributable to approval delays and project phasing. We expect the Life Republic (LR) project to sustain its salesmomentum and strong cash flows, further improving the margin through better realizations. KPDL is also reassessing its launch pipeline strategy, while the pending Blackstone transaction signals the potential for future partnerships. The proactive management and expansion position the company for sustained growth. With strong cash flows, KPDL is a net cash positive company with comfortable liquidity. This may also pave the way for accelerated business development (BD) activity. Given strong BD and better than-expected price realisations (5-10% increase), HDFC Securities maintains BUY with a target price of Rs 480/share.

Promoter/FII Holdings
Promoters held 69.45 per cent stake in the company as of 31-Mar-2025, while FIIs owned 4.15 per cent, DIIs 5.59 per cent.