Oberoi Realty OBEREA) - ICICI Directcontent.icicidirect.com/mailimages/IDirect_OberoiRealty... · 2020. 2. 13. · Oberoi Realty OBEREA) HOLD FY21E launches to hold key ... Borivali

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Result

Update

February 12, 2020

CMP: | 520 Target: | 580 (12%) Target Period: 12-18 months

Oberoi Realty (OBEREA)

HOLD

FY21E launches to hold key…

Oberoi Realty’s (ORL) sales volumes grew 5.3% YoY (11.3% QoQ growth)

to 1.55 lakh square feet (lsf) in Q3FY20. The company clocked sales value of

| 303.3 crore and achieved | 584.9 crore collections in Q3FY20. Revenues

were flattish YoY at | 527.4 crore. EBITDA margins expanded 30 bps QoQ

to 43.6%. Overall, PAT grew 7.5% YoY to | 148.2 crore.

Sales volumes de-grow 20.5% in 9MFY20

Sales volumes grew 5.3% YoY (11.3% QoQ growth) to 1.55 lsf on account

of lower sales at Eternia, Enigma and Three Sixty West projects. Sky City

project recorded strong sales momentum with 65,326 sq ft (42 units) sold

with a total sales value of | 100.4 crore in Q3FY20. Overall, no new launches

and weak demand dynamics in the sector have impacted the company’s

sales performance, which de-grew 20.5% YoY to 5.3 lsf in 9MFY20.

Furthermore, with no new launches planned in Q4FY20, we lower ORL’s

sales volume estimates to 0.7 msf, 1.7 msf in FY20E, FY21E, respectively.

Goregaon, Thane launches further postponed to Q1FY21E

ORL launched Maxima in October, 2019 and received a good response to

the project. The Thane land parcel of ~60 acres could potentially help the

company come up with total development of ~12 msf. ORL plans to start a

residential project that could be launched by H1FY21E end. The Thane

development could additionally include a small retail asset, hotel, school and

possibly a commercial asset. The project is being conceptualised on the

lines of Oberoi Garden City. Secondly, Exquisite-III, Goregaon is also

expected to be launched by H1FY21E end.

Strong ramp up in annuity portfolio to drive rental income

ORL clocked 8% YoY growth in lease revenues to | 91.6 crore in Q3FY20.

Commerz-II has achieved 100% occupancy at an average lease rate of

| 133/sq ft per month, thus generating lease revenues worth | 31.2 crore in

Q3FY20. On the new developments front, the Borivali mall is expected to

commence in Q4FY21E, while the I-Ven mall in Worli is expected to

commence around Q2FY22E. ORL has already started construction of

Commerz-III that is expected to be completed by FY22E end. Such a strong

ramp up in annuity portfolio would lead to significant growth in rental

income, over the next three years.

Valuation & Outlook

ORL’s recent disappointment in sales volume as well as launches is reflective

of challenging market condition. Nonetheless, we like the company given

quality of land bank, healthy balance sheet & management bandwidth to

execute large projects. The company is strongly ramping up its annuity

portfolio that would provide stable secure cash flows. We roll our NAV to

FY21E and maintain HOLD on the stock with a revised target price of | 580.

Key Financial Summary

| crore FY17 FY18 FY19 FY20E FY21E CAGR FY19-21E

Net Sales 1113.7 1265.4 2582.5 2127.8 2536.2 -0.9%

EBITDA 569.9 675.3 1155.4 873.9 1108.0 -2.1%

EBITDA Margin (%) 51.2 53.4 44.7 41.1 43.7

Net Profit 378.7 458.8 816.9 594.9 905.3 5.3%

EPS (|) 10.4 12.6 22.5 16.4 24.9

P/E (x) 47.9 39.5 22.2 30.5 20.0

EV/EBITDA (x) 29.5 25.6 14.2 18.8 14.6

RoE (%) 6.6 7.5 10.1 6.9 7.9

RoCE (%) 8.6 8.4 12.4 8.6 10.1

Source: Company, ICICI Direct Research

Particulars

Particular Amount (| crore)

Market Capitalization 18,907.2

Total Debt 1,585.8

Cash 3,368.1

EV 17,124.9

52 week H/L (|) 642 / 438

Equity capital 363.6

Face value (|) 10.0

Key Highlights

Sales volumes grew 5.3% YoY,

11.3% QoQ to 1.55 lsf in Q3FY20

Launch of Exquisite Phase-III at

Goregaon, Thane project has been

further postponed to H1FY21E end

Borivali mall expected to be launched

in Q4FY21E

Maintain HOLD with target price of

| 580

Research Analyst

Bhupendra Tiwary, CFA

[email protected]

Harsh Pathak

[email protected]

ICICI Securities | Retail Research 2

ICICI Direct Research Result Update | Oberoi Realty

Exhibit 1: Variance Analysis

Q3FY20 Q3FY20E Q3FY19 YoY (Chg

%)

Q2FY20 QoQ

(Chg %)

Comments

Income from Operation 527.4 497.6 528.6 -0.2 491.4 7.3

Other Income 9.1 15.0 20.2 -54.9 13.6 -33.3

Operating Cost 261.5 248.8 297.5 -12.1 242.5 7.8

Employee cost 15.6 17.4 17.4 -9.9 17.1 -8.5

Other expenditure 20.4 22.4 25.7 -20.7 19.0 7.0

EBITDA 229.9 209.0 188.1 22.2 212.8 8.0

EBITDA Margin (%) 43.6 42.0 35.6 801 bps 43.3 29 bps

Depreciation 11.3 11.3 11.4 -1.1 11.3 -0.3

Interest 19.9 24.6 4.9 310.5 24.6 -18.9

PBT 207.8 188.1 192.0 8.3 190.6 9.0

Taxes 61.5 52.7 57.3 7.2 54.0 13.8

PAT 148.2 136.9 137.9 7.5 138.0 7.4

Key Metrics

Sales Volume (in sq ft) 155,150 168,000 147,276 5.3 139,454 11.3Sales volume de-growth on account of weak demand scenario

and slowdown in overall economy


Exhibit 2: Change in estimates

FY19 FY20E FY21E

(| Crore) Old New % Change Old New % Change

Revenue 1265.4 2582.5 2280.2 2127.8 -6.7 3171.5 2536.2 -20.0

EBITDA 675.3 1155.4 959.5 873.9 -8.9 1401.5 1108.0 -20.9

EBITDA Margin (%) 53.4 44.7 42.1 41.1 -103 bps 44.2 43.7 -51 bps

PAT 458.8 816.9 733.7 594.9 -18.9 1026.1 905.3 -11.8

EPS (|) 12.6 22.5 20.2 16.4 -18.9 28.2 24.9 -11.8

FY18


Exhibit 3: Assumptions

FY17 FY18 FY19 FY20E FY20E FY21E FY21E Comments

Volume sold in msf New Earlier New Earlier

Goregaon 0.1 0.2 0.3 0.2 0.2 0.3 0.5

Andheri/Borivali 0.2 0.2 0.3 0.4 0.4 0.5 0.4

Worli 0.2 0.1 0.1 0.1 0.1 0.2 0.2

Mulund 0.1 0.1 0.1 0.1 0.2 0.2 0.2

Pune 0.0 0.0 0.0 0.0 0.0 0.0 0.2

Thane 0.0 0.0 0.0 0.0 0.1 0.6 0.6

Total 0.6 0.55 0.8 0.7 1.1 1.7 2.1 Incorporate 9MFY20 performance




Conference Call Highlights

Q3FY20 operational performance: ORL’s sales volumes grew 5.3% YoY

(11.3% sequential growth) to 1.55 lakh sq ft (lsf) on account of lower

sales at Eternia, Enigma and Three Sixty West projects. The company

clocked sales value of | 303.3 crore and achieved | 584.9 crore

collections in Q3FY20

Launch pipeline: The company launched Maxima in October, 2019 and

has received a good response to the project. ORL is planning to launch

Exquisite Phase-III project at Goregaon, whose construction is under

way and Thane projects by H1FY21E end

Borivali project: The company has eight towers in Sky City Borivali

(3,000 apartments) out of which 1,800 units have been launched across

five towers and are under construction. ORL has sold ~1,200 units (66%

inventory) till now

Mulund properties: The company saw strong footfalls at the Mulund

project on the back of a good response to advertisement of the projects.

With the project now near completion, potential buyers are seeing

visibility with regard to possession that is expected to be given by FY21E

end. This drove response far more than what the management

expected. With this, it is optimistic of seeing higher activity at these

projects, going ahead

Three Sixty West project: ORL sold one unit (10,394 sq ft) with total sales

value of | 54.3 crore in Q3FY20. The company has applied for OC, which

is expected to be received in early Q1FY21E. This could lead to increase

in footfalls of potential buyers that could lead to a further increase in

sales volumes at this project, going ahead

Thane project: At Thane, the company aims to start a residential project

and will additionally include retail, hotel, school and possibly

commercial assets. The land parcel of ~60 acres would potentially help

the company come up with a total development of ~12 msf. The

company is conceptualising project on the lines of Oberoi Garden City.

However, it may not have massive retail, because of proximity of a major

retail mall from this development

Investment properties: Oberoi Mall reported good revenue growth by

5.2% YoY to | 40.9 crore mainly on account of 5.3% YoY rental rate

growth to | 255/sq ft per month in Q3FY20. The company reported

100.0% occupancy at Commerz-II, which aided 38.2% YoY growth in

revenues to | 31.2 crore at a rental rate of | 133/sq ft per month in

Q3FY20. ORL has already started construction of Commerz-III, which is

expected to be completed by FY22E end

Upcoming annuity portfolio: The Borivali mall is expected to commence

in Q4FY21E while the I-Ven mall in Worli is expected to commence

around Q2FY22E. Furthermore, the Ritz-Carlton hotel is expected to

receive approval by Q3FY21E end. Going ahead, ORL aims to take the

annuity asset income to anywhere between | 1,500 and | 1,800 crore

every year

Hospitality assets: The company is contemplating building a small 200

room hotel along with Commerz-III. Secondly, at Borivali, ORL will have

a four/five star hotel. The work has started along with the mall, since it

would sit on top of the mall



Company Analysis

Exhibit 4: Quarterly sales volumes trend

1.52

1.31

2.87

2.39

1.47

1.45

2.40

1.39

1.55

0.50

1.00

1.50

2.00

2.50

3.00

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

(la

kh s

q ft)


Exhibit 5: Sales volumes to improve from here on

0.1 0.20.3

0.20.30.2

0.2

0.30.4

0.5

0.2 0.1

0.10.1

0.2

0.1 0.1

0.10.1

0.2

0.0

0.6

0.6 0.6

0.80.7

1.7

0.0

0.5

1.0

1.5

2.0

2.5

FY17 FY18 FY19 FY20E FY21E

Goregaon Andheri/Borivali Worli Mulund Pune Thane


Exhibit 6: Quarterly average realisation trend

23,464

23,464

22,644

18,186

23,464

19,632

22,644

16,20123,464

19,632

22,644

15,33223,464

19,632

22,644

16,837

10,000

15,000

20,000

25,000

30,000

Goregaon

(Exquisite)

Goregaon

(Escquire)

Andheri Overal l

(| per s

q ft)

Q4FY19 Q1FY20 Q2FY20 Q3FY20


Exhibit 7: Annual realisation trend across projects

10,000

15,000

20,000

25,000

30,000

Goregaon

(Exquisite)

Goregaon

(Escquire)

Mulund Borivali Overal l

(| per s

q ft)





Exhibit 8: Ongoing residential projects operational metrics

Particulars Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19

Area Booked (sq ft)

Oberoi Esquire 26872 18772 63204 46700 29865

Oberoi Exquisite 17601 - - - 1690

Three Sixty West 10394 36127 1821 24420 -2052

Maxima 13803 - - - -

Prisma 2602 9171 8004 - -

Eternia 11730 18470 20260 9970 21840

Enigma 6822 11841 22541 12580 20738

Sky City 65326 45073 124138 51508 75195

Total 139,454 239,968 145,178 147,276

Sales Value (| crore)

Oberoi Esquire 59.3 41.4 124.1 97.8 66.7

Oberoi Exquisite 35.5 - - - 4.4

Three Sixty West 54.3 150.2 11.5 105.1 (13.8)

Maxima 21.9 - - - -

Prisma 5.1 19.4 16.4 - -

Eternia 17.1 23.6 27.1 14.8 32.3

Enigma 9.8 15.8 34.3 17.5 32.3

Sky City 100.4 72.5 187.7 83.9 119.7

Average Realization for the quarter (|/sq ft)

Oberoi Esquire 22,053 22,045 19,631 20,942 22,334

Oberoi Exquisite 20,180 - - - 26,133

Three Sixty West 52,233 41,581 - 43,053

Maxima 15,853 - - - -

Prisma 19,666 21,125 20,528 - -

Eternia 14,546 12,789 13,382 14,818 14,788

Enigma 14,302 13,297 15,234 13,872 15,566

Sky City 15,372 16,075 15,119 16,281 15,921

Project Completion (%)

Oberoi Esquire 100.0 100.0 100.0 100.0 100.0

Oberoi Exquisite 100.0 100.0 100.0 100.0 100.0

Three Sixty West * * * * *

Maxima *

Prisma 100.0 100.0 100.0 100.0 100.0

Eternia 58.0 54.0 49.0 42.0 34.0

Enigma * * * * *

Sky City 68.0 61.0 56.0 49.0 40.0

Inventory as on Date (sq ft)

Oberoi Exquisite 104044 121645 121645 121645 121645

Three Sixty West 1682460 1692854 1728981 121645 1755222

Maxima 281301 0 0 0 0

Prisma 16977 19579 28750 36754 36754

Eternia# 930680 548000 566470 586730 434690

Enigma# 1097906 850010 861851 884392 662419

Sky City# 1046884 811358 838591 962729 954134




Exhibit 9: Leasing trend

0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3

0.7 0.80.5 0.5

0.60.6

0.5

0.5

0.5 0.5

0.9 0.80.9

1.0

1.1

1.3

1.5 1.6

0.0

0.3

0.6

0.9

1.2

1.5

1.8

FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E

(m

n s

q ft)

Commerz I Commerz II Phase I Oberoi Mall


Exhibit 10: Leasing revenues trend

48 47 47 46 45 42 35 39

123 12487

94 94

100

111

151

161174

135147 150

173

204

276

320337

0

75

150

225

300

375

FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E

(| crore)

Commerz I Commerz II Phase I Oberoi Mall


Exhibit 11: Hotel revenue trend

128.0126.6

128.7

137.1 137.9

152.7

100

110

120

130

140

150

160

FY16 FY17 FY18 FY19E FY20E FY21E

(| crore)


Exhibit 12: Westin’s operating profit trend

41.6

43.6

42.0

49.6

49.9

56.8

32.5

34.5

32.7

36.236.2

37.2

27

30

33

36

39

42

0.0

15.0

30.0

45.0

60.0

75.0

FY16 FY17 FY18 FY19E FY20E FY21E

(%

)

(| crore)

EBITDA Margins (RHS)




Exhibit 13: Operational trend in Oberoi’s rental and hospitality portfolio

Particulars Q3FY20 Q2FY20 Q1FY20 Q4FY19 Q3FY19

Oberoi Mall (Retail Property)

Operating Revenue (| crore) 40.9 40.1 39.6 39.0 38.9

EBITDA margin (%) 95.4 94.1 95.5 95.9 95.5

Occupancy (%) 96.9 96.6 96.6 96.7 96.9

Realisation (|/sqft/month) 255 250 247 243 242

Commerz I (Commercial Space)


EBITDA margin(%) 94.0 94.7 94.9 97.1 94.8

Occupancy (%) 50.6 77.0 77.4 77.4 77.7


Commerz II Phase I (Commercial Space)


EBITDA margin(%) 95.5 95.7 93.5 92.7 90.8

Occupancy (%) 100.0 96.9 95.7 74.4 63.7


The Westin Mumbai Garden City

(Hospitality)


EBITDA margin(%) 39.8 32.1 32.0 39.2 37.1

Average Room Rate (|) 10148 8588 8946 9905 9712

Occupancy (%) 79.3 78.3 79.9 84.3 80.2

RevPAR (|) 8094 6717 7148 8360 7775




Financial story in charts

Exhibit 14: Revenue trend

1,113.7 1,265.4

2,582.5

2,127.8

2,536.2

500

1000

1500

2000

2500

3000

3500

4000


(| crore)


Exhibit 15: EBITDA margin trend

51.2

53.4

44.7

41.1

43.7

35

40

45

50

55

60


(%

)


Exhibit 16: PAT trend

378.7 458.8 816.9 594.9 905.3

0

250

500

750

1000

1250

1500


(| crore)



ICICI Direct Research

Result Update | Oberoi Realty

Exhibit 17: Return ratios trend

8.6

8.4

12.4

8.6

10.1

6.6 7.5

10.1

6.9

7.9

0

4

8

12

16


(%

)

RoCE RoNW





Valuation & Outlook

ORL’s recent disappointment in sales volume as well as launches is reflective

of challenging market conditions. Nonetheless, we like the company given

quality of land bank, healthy balance sheet and management bandwidth to

execute large projects. The company is strongly ramping up its annuity

portfolio, which would provide stable secure cash flows. We roll our NAV to

FY21E and maintain HOLD with a revised target price of | 580/share.

Exhibit 18: Valuation

Location Type Status Saleable Area ( in

mn sq ft)

NAV NAV

Multiple

Value (| cr) |/share

Goregaon 10.1 9,325.2 9,325.2 256.5

Oberoi Mall Retail Completed 0.6 2,106.8 1.0 2,106.8 57.9

Commerz I Commercial Completed 0.4 482.7 1.0 482.7 13.3

Westin Hotel Completed 0.4 1,106.3 1.0 1,106.3 30.4

Exquisite I Residential Ongoing 1.5 212.3 1.0 212.3 5.8

Exquisite II Residential Ongoing 1.5 427.8 1.0 427.8 11.8

Commerz II Phase I Commercial Ongoing 0.7 1,287.0 1.0 1,287.0 35.4

Exquisite III Residential Planned 1.9 901.6 1.0 901.6 24.8

Commerz II Phase II Commercial Planned 1.7 2,688.9 1.0 2,688.9 74.0

Oberoi International school Social Infrastructure Ongoing 0.3

Education complex Planned 0.9

Hospital Planned 0.4

Andheri/Khar/Borivali 3.1 5,266.5 5,266.5 144.8

Oberoi Maxima Commercial Ongoing 0.3 294.9 1.0 294.9 8.1

Oberoi Prisma Residential Ongoing 0.7 18.1 1.0 18.1 0.5

Oberoi Splendour IT park Commercial Planned 0.1 93.0 1.0 93.0 2.6

Oberoi Splendour school Social Infrastructre Planned 0.4 14.7 1.0 14.7 0.4

Borivali Residential Ongoing 4.5 2,613.4 1.0 2,613.4 71.9

Borivali Mall Planned 1.6 2,232.5 1.0 2,232.5 61.4

Worli 3.6 3,102.0 3,102.0 85.3

Oasis Residential Residential Ongoing 2.3 1,158.7 1.0 1,158.7 31.9

Oasis Hospitality Hotel Ongoing 0.3 681.9 1.0 681.9 18.8

I-Ventures Mall Planned 1.0 1,261.4 1.0 1,261.4 34.7

Thane Residential Planned 10.2 3,069.0 1.0 3,069.0 84.4

Mulund 3.2 1,273.0 1,273.0 35.0

Eternia Residential Ongoing 1.6 722.1 1.0 722.1 19.9

Enigma Residential Ongoing 1.6 442.7 1.0 442.7 12.2

Mulund Commercial Commercial Planned 0.1 108.1 1.0 108.1 3.0

Pune 1.3 98.5 98.5 2.7

Sangam city - Residential Residential Planned 0.8 35.2 1.0 35.2 1.0

Sangam city - Commercial Commercial Planned 0.3 33.7 1.0 33.7 0.9

Sangam city - Retail Retail Planned 0.3 29.7 1.0 29.7 0.8

Net cash/ (Debt) (923.4) 1.0 (923.4) (25.4)

Total 31.6 21,210.9 1.0 21,210.9 583

Rounded off Target price 580

111.9 1.0 111.9 3.1





Exhibit 19: Recommendation History vs. Consensus

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

0

100

200

300

400

500

600

700

Feb-20Nov-19Aug-19May-19Feb-19Nov-18Aug-18May-18Mar-18Dec-17Sep-17Jun-17Mar-17

(%

)(|)

Price Idirect target Consensus Target Mean % Consensus with BUY

Source: Bloomberg, Company, ICICI Direct Research

Exhibit 20: Top 10 Shareholders

Rank NameLatest Filing

Date

% O/SPosition

(m)

Change

(m)

1 Oberoi Vikas 30-Jun-19 58.55 212.9 0.0

2 R S Estate Developer 30-Jun-19 9.16 33.3 0.0

3 Invesco Ltd 11-Feb-20 4.52 16.4 0.1

4 Fmr Llc 31-Dec-19 2.11 7.7 1.4

5 Franklin Resources 10-Feb-20 2.05 7.5 -1.2

6 Wellington Managemen 30-Jun-19 1.65 6.0 0.9

7 Stichting Depost Apg 30-Jun-19 1.54 5.6 0.8

8 Fidelity Inv Trust F 30-Jun-19 1.50 5.5 0.4

9 L&T Mutual Fund 31-Dec-19 1.19 4.3 0.0

10 Vanguard Group 31-Dec-19 0.98 3.6 0.0

Source: Reuters, ICICI Direct Research

Exhibit 21: Shareholding Pattern

(in %) Dec-18 Mar-19 Jun-19 Sep-19 Dec-19

Promoter 67.7 67.7 67.7 67.7 67.7

FII 25.4 25.4 26.1 26.1 26.1

DII 4.5 4.5 3.9 3.9 3.9

Others 2.4 2.4 2.4 2.4 2.4





Financial summary

Exhibit 22: Profit and loss statement | crore

(Year-end March) FY18 FY19 FY20E FY21E

Net Sales 1,265.4 2,582.5 2,127.8 2,536.2

Other Operating Income 0.0 0.0 0.0 0.0

Total Operating Income 1,265.4 2,582.5 2,127.8 2,536.2

Growth (%) 13.6 104.1 -17.6 19.2

Operating Costs 467.9 1,247.2 1,087.5 1,253.5

Employee Expenses 67.2 73.4 70.4 73.9

Other Expenses 55.1 106.6 95.9 100.7

Total Operating Expenditure 590.1 1,427.1 1,253.9 1,428.2

EBITDA 675.3 1,155.4 873.9 1,108.0

Growth (%) 18.5 71.1 -24.4 26.8

Depreciation 49.1 44.0 48.2 54.1

Interest 6.9 19.4 87.7 123.1

Other Income 26.6 78.8 41.7 47.4

PBT 645.9 1,170.7 779.8 978.3

Prior Period Adjustments 0.0 0.0 0.0 0.0

Total Tax 190.7 360.7 195.0 244.6

PAT before profit from associates 455.2 810.0 584.9 733.7

Minoriy Interest 0.0 0.0 0.0 0.0

Profit from associates 3.6 6.9 10.0 171.6

PAT 458.8 816.9 594.9 905.3

EPS (|) 12.6 22.5 16.4 24.9


Exhibit 23: Cash flow statement | crore


Profit after Tax 458.8 816.9 594.9 905.3

Depreciation 49.1 44.0 48.2 54.1

Interest 6.9 19.4 87.7 123.1

Others -19.8 -71.7 -51.7 -219.0

Net Increase in Current Assets -452.8 296.2 -332.3 -102.8

Net Increase in Current Liabilities -224.3 -995.7 422.5 330.4

Net cf from operating activities -202.2 145.6 769.2 1,091.0

(Purchase)/Sale of Fixed Assets -77.3 -170.6 -735.7 -769.9

Others -19.8 -71.7 -51.7 -219.0

Net cf from Investing Activities -588.3 -645.8 -690.1 -550.9

Inc / (Dec) in Equity Capital 1.7 1,182.7 0.0 0.0

Inc / (Dec) in Loan Funds 854.6 -110.3 0.0 0.0

(Payment) of Dividend & Div. Tax -81.7 -81.9 -89.2 -135.8

Interest paid -99.6 -151.6 -87.7 -123.1

Net cf from Financing Activities 675.0 838.9 -176.9 -258.9

Net Cash flow -115.5 338.8 -97.8 281.2

Opening Cash/Cash Equivalent 235.9 92.8 431.5 333.8

Closing Cash/ Cash Equivalent 120.4 431.5 333.8 615.0


Exhibit 24: Balance sheet | crore


Equity Capital 339.6 363.6 363.6 363.6

Preference Capital 0.0 0.0 0.0 0.0

Reserve and Surplus 5,752.8 7,665.6 8,171.2 8,940.7

Total Shareholders funds 6,092.4 8,029.2 8,534.8 9,304.3

Total Debt 1,694.0 1,585.8 1,585.8 1,585.8

Total Liabilities 10,225 11,129 12,057 13,157

Assets

Gross Block 1,123.5 1,252.5 1,302.5 1,352.5

Less Accumulated Depreciation 147.0 189.9 238.1 292.2

Net Block 976.5 1,062.5 1,064.3 1,060.2

Capital WIP 112.5 125.1 810.8 1,530.7

Total Fixed Assets 1,089.0 1,187.7 1,875.1 2,591.0

Goodwill on consolidation 0.0 0.0 0.0 0.0

Investments 2,424.2 2,942.8 2,942.8 2,942.8

Inventory 4,246.7 4,165.5 4,413.5 4,538.8

Debtors 181.3 109.4 225.2 266.4

Loans and Advances 1,874.8 1,946.6 1,915.0 1,851.4

Cash 116.7 425.3 333.8 615.0

Other Current Assets 146.2 216.4 216.4 216.4

Total Current Assets 6,565.7 6,863.2 7,103.9 7,488.0

Creditors 2,437.9 1,512.7 1,935.2 2,265.6

Provisions 0.4 0.8 0.8 0.8

Net Current Assets 4,127.4 5,349.7 5,167.9 5,221.5

Deferred Tax Assets 145.8 134.8 134.8 134.8

Total Assets 10,225 11,128 12,057 13,157


Exhibit 25: Key ratios


Per share data (|)

EPS 12.6 22.5 16.4 24.9

Cash EPS 14.0 23.7 17.7 26.4

BV 167.6 220.8 234.7 255.9

Operating profit per share 18.6 31.8 24.0 30.5

Cash Per Share 3.2 11.7 9.2 16.9

Operating Ratios (%)

EBITDA Margin 53.4 44.7 41.1 43.7

PBT / Net Sales 51.0 45.3 36.6 38.6

PAT Margin 36.0 31.4 27.5 28.9

Inventory days 1,225 589 757 653

Debtor days 52 15 39 38

Creditor days 703 214 332 326

Return Ratios (%)

RoE 7.5 10.1 6.9 7.9

RoCE 8.4 12.4 8.6 10.1

RoIC 12.6 18.6 14.0 18.6

Valuation Ratios (x)

P/E 41.2 23.1 31.8 20.9

EV / EBITDA 26.7 14.8 19.7 15.3

EV / Net Sales 14.3 6.6 8.1 6.7

Market Cap / Sales 14.9 7.3 8.9 7.5

Price to Book Value 3.1 2.4 2.2 2.0

Solvency Ratios (x)

Debt / EBITDA 2.5 1.4 1.8 1.4

Debt / Equity 0.3 0.2 0.2 0.2

Current Ratio 2.6 4.3 3.5 3.0

Quick Ratio 0.9 1.5 1.2 1.0





Exhibit 26: ICICI Direct coverage universe (Real Estate)

CMP M Cap

(|) TP(|) Rating (| Cr) FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E

Oberoi Realty (OBEREA) 520 580 Hold 18,907 22.5 16.4 24.9 22.2 30.5 20.0 14.2 18.8 14.6 2.4 2.2 2.0 10.1 6.9 7.9

The Phoenix Mills (PHOMIL) 715 870 Buy 10,950 24.4 21.9 24.8 26.0 32.0 28.9 14.8 14.4 13.1 3.2 2.9 2.6 10.7 8.7 9.0

Brigade Enterprises (BRIENT) 236 275 Buy 4,281 11.7 9.6 4.7 20.1 24.7 50.3 10.5 10.9 10.3 2.2 2.2 2.1 11.1 8.9 4.3

P/E (x)

Sector / Company

EPS (|) EV/EBITDA (x) P/B (x) RoE (%)





RATING RATIONALE

ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its

stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,

Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined

as the analysts' valuation for a stock

Buy: >15%

Hold: -5% to 15%;

Reduce: -15% to -5%;

Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]




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