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Peninsula Land
Research: Enam Securities
Rating: Outperformer
CMP: Rs 486

Enam Securities has upgraded the Peninsula Land stock to a ?sector outperformer?. Peninsula has applied for necessary approvals to change the land usage for its Dawn Mills property in Lower Parel in Mumbai from commercial to an IT Park, thereby doubling the floor space index (FSI) and saleable area to ~1.2 million sq ft. This has resulted in a significant upside in valuations. The company expects to receive Rs 2,500-2,700 crore in revenues over the next three years from this project alone. Its SEZ plans are in final stages and it expects to start construction on all three SEZ projects in FY08. Real estate prices in Mumbai remain stable with no significant pressures on selling prices. The company?s future expansion plans will be in the western and southern regions, with the exception of Kolkata in the East. The company is currently evaluating projects in Bangalore, Hyderabad, Ahmedabad and Nagpur. Enam believes the company is a high quality real estate player in Mumbai with a strong focus on the commercial segment. At the current market price, the stock trades at a significant discount of ~34% to its net asset value (NAV) of Rs 637. Source :Sep 03, 3007 The Economic Times << Back