Extremely confident about PEPL’s growth prospects. BUY for TP of ₹1725 (+45%)

[Pee Vee]

PEPL has a diverse portfolio with a presence in residential, office, retail, and hospitality segments. The company’s 9MFY25 incremental BD of 15msf and the launch pipeline of INR800b would result in a presales CAGR of 14% over FY24-27E to reach INR315b by FY27E. PEPL is expanding its commercial segment (by 43msf) as well as its hospitality portfolio. Therefore, its commercial rental income is likely to clock a 53% CAGR to reach INR19.5b and its hospitality revenue would post a 20% CAGR to reach INR13.7b over FY24-27E. However, income from the commercial segment is likely to improve to INR33b by FY30E as all the under-construction assets are operationalized. PEPL has quickly started gaining market share in MMR; it now plans to enter and scale up NCR as well as Pune, which will generate an incremental income stream. Therefore, we are extremely confident about PEPL’s growth prospects and reiterate our BUY rating with a revised TP of INR1,725.