Kolte Patil - Strong Launch Pipeline Will Lead To Surpass FY24 Target: Yes Securities

Yes Securities Report

Kolte Patil Developers Ltd. achieved 36% compound annual growth rate growth for presales in terms and 25% CAGR for volumes over FY21-23 guided by the strong launches across segment and geographies of its presence.

On the back of the strong demand management guided for the Rs 28 billion/Rs 35 billion for FY24E/FY25E respectively (25% CAGR). In Q1 FY24, Kolte Patil already launched ~2.73 million square feet with potential sales of Rs 19.9 billion and further plans to launch another ~4.74 msf (Rs 32 billion) in remaining part of year to comfortably achieve its presales target.

To strengthen the launch pipeline further, Kolte Patil tied up six projects (four-Mumbai/two-Pune) with a gross development of Rs 34.5 billion and targets another Rs 70 billion of business development for the rest of the year.

As a part of diversification strategy, contribution to presales from Mumbai and Bangalore will increase to 30% by FY25E from ~20% in FY23 with the planned launches in both markets.

With addition of four projects under society redevelopment in Q1 FY24, Mumbai tallies for 11 projects. Kolte Patil in Q1 FY24 secured Rs 2.1 billion of investment (first tranche) from Marubeni Corporation (Japan) for its Pimple Nilakh project.

Kolte Patil is well placed to capitalise the strong demand momentum with net debt/equity of 0.02 times, creditable track record in society redevelopment, leadership position in primary market and strong launch visibility of Rs 256 billion.

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