UBS rating on Indiabulls Real Estate rises from `Neutral’ to `Buy’
Concerns on leasing delays at Indiabulls Properties Investment Trust (IPIT) assets and low return visibility on Mumbai mill land purchases are largely priced in with the stock at a 45% discount to our NAV of Rs 315.
By ET Bureau |
INDIABULLS REAL ESTATE
RESEARCH: UBS
RATING: BUY
CMP: 189.5
Concerns on leasing delays at Indiabulls Properties Investment Trust (IPIT) assets and low return visibility on Mumbai mill land purchases are largely priced in with the stock at a 45% discount to our NAV of Rs 315. A recovery in office leasing for Mumbai over the past two quarters is likely to drive large lease sign-ups for key IPIT assets in Mumbai over the next six to eight months, particularly given its assets are partly operational and further about 2msf is ready inventory; and 2) good progress in construction across key projects (8.9 msf) to result in better operational/financial performance in subsequent quarters should improve stock sentiment. With a de-leveraged balance sheet, a large asset base of paid land reserves, and a healthy 29% upside to our price target of Rs 221, UBS thinks it is a good trade opportunity. Also their rating on the stock rises from `Neutral’ to `Buy’ .
RESEARCH: UBS
RATING: BUY
CMP: 189.5
Concerns on leasing delays at Indiabulls Properties Investment Trust (IPIT) assets and low return visibility on Mumbai mill land purchases are largely priced in with the stock at a 45% discount to our NAV of Rs 315. A recovery in office leasing for Mumbai over the past two quarters is likely to drive large lease sign-ups for key IPIT assets in Mumbai over the next six to eight months, particularly given its assets are partly operational and further about 2msf is ready inventory; and 2) good progress in construction across key projects (8.9 msf) to result in better operational/financial performance in subsequent quarters should improve stock sentiment. With a de-leveraged balance sheet, a large asset base of paid land reserves, and a healthy 29% upside to our price target of Rs 221, UBS thinks it is a good trade opportunity. Also their rating on the stock rises from `Neutral’ to `Buy’ .
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