Brokerage Firm Forecasts Strong Growth Trajectory and Potential Upside for Kolte Patil Shares
Kolte Patil Developers witnessed a remarkable surge of nearly 10% in its share price on Wednesday, April 10th, following brokerage firm Motilal Oswal’s initiation of coverage with a bullish ‘buy’ recommendation. Motilal Oswal’s analysis forecasts a target price of Rs 700 for Kolte Patil, indicating a potential upside of 34% from its current levels.
At the opening bell, Kolte Patil shares were trading at Rs 536, experiencing a notable uptick from its previous close of Rs 517.45. The bullish momentum continued as the stock quickly climbed to Rs 567.80 on the NSE. By 10 am, the shares were trading at Rs 561.65 apiece, reflecting an increase of 8.54%.
Motilal Oswal’s assessment of Kolte Patil Developers underscores a significant growth trajectory in pre-sales, with a reported 36% CAGR over FY21-23. With a robust pipeline in place, the firm anticipates a sustainable 25% CAGR in pre-sales for the next two years, driven by new project additions.
The report highlights Kolte Patil’s focus on growth alongside a robust balance sheet, enabling effective pursuit of project expansions. Motilal Oswal also forecasts an expansion of EBITDA margin to 17% by FY26, with a rebound in PAT margin to 8% in the same period, reflecting confidence in the company’s growth prospects.
Despite the bullish outlook, the report identifies key risks, including potential challenges in adding new projects and any slowdown in demand momentum. However, Motilal Oswal’s optimistic stance reflects confidence in Kolte Patil’s ability to navigate these challenges and sustain its growth trajectory.
Over the past year, Kolte Patil shares have delivered robust gains, doubling investors’ money with an impressive surge of approximately 101%. However, the stock has lagged behind the Nifty Realty index, indicating potential room for further growth.
