Yes Securities, a leading brokerage house, has predicted an 86 percent upside in realty company Puravankara, following its impressive 235 percent returns in the last year. The brokerage has initiated a ‘buy’ call on the stock with a target price of ₹452, indicating a significant potential for growth.
According to Yes Securities, Puravankara has benefited from the strong demand in the residential real estate sector, allowing it to monetize completed inventory at a rapid pace and generate a strong cash flow. The brokerage highlighted several factors that support its positive outlook on the company, including projected growth in presales, controlled debt levels, a strong execution track record, and a shift in focus under a new CEO.
The stock price trend for Puravankara has been positive, with a 32 percent increase in 2024 so far. Despite some fluctuations in the market, the stock has shown resilience and is currently trading at ₹242.60, with a potential to reach ₹452 according to Yes Securities.
The brokerage expects presales to grow at a compound annual growth rate of 20 percent over the next few years, driven by the company’s strong project pipeline and focus on timely execution. Additionally, Puravankara’s efforts to reduce debt levels and improve debt coverage are seen as positive indicators for future growth.
Overall, Yes Securities believes that Puravankara is on the right track for strong growth in the coming years, with potential expansion into new geographies and improved financial performance. Investors are advised to consult with certified experts before making any investment decisions.
