Stock Of The Day: Prestige Estates Acquires 62-Acre Land In NCR—Analyst Views, Key Levels
All you need to know about Prestige Estates buying 62.5 acre of land in NCR.
Prestige Estates Projects Ltd. has acquired a land parcel of 62.5 acres in the Indirapuram Extension, in the national capital region.
The acquisition is in line with the company's aim to expand its footprint in the real estate market in the NCR.
Shares of Prestige Estates Projects traded 4.42% higher at Rs 1,095 per share, compared to the 0.03% loss in the Nifty 50 as of 10:06 a.m. The stock hit an intraday high of 6.75%.
Key Levels To Watch
Key support: Rs 967.1 per share (low as of March 19).
Key resistance: Rs 1,240 apiece (three-week high).
About The Acquisition
The 62.5-acre land, acquired for a total consideration of Rs 468 crore, will be developed primarily as a residential project under ‘The Prestige City’ format, which has seen success in Bengaluru, Mumbai, and Hyderabad, the company said in an exchange filing on Thursday.
The project is to build a large township with residential, retail, school and recreational spaces. The large-format project spans over 10 million square feet of saleable area and has a projected gross development value, or GDV, surpassing Rs 10,000 crore, the company said.
Prestige Estates plans to launch the project within the next two quarters and complete development in four years.
NDTV Profit Exclusive: Prestige-Marriott Likely To Ink Pact
Prestige Estate Projects Ltd. is also likely to ink a pact with Marriott Inc. to develop six properties across the western and southern regions of South Asia, according to two people with knowledge of the matter.
Under the agreement, Marriott will develop a hotel under its brand Autograph Collection in Goa, the first in South Asia. Prestige Estate confirmed the development in an emailed response and pegged the valuation of these six properties at Rs 4,250 crore.
The cumulative inventory is 801 keys, with hotels spanning across Bengaluru, Goa and Sakleshpur, according to the people quoted above, who spoke on condition of anonymity.
Prestige Estate stated in the email response that they will complete the projects in two to five years.
The group also plans to open hotels under the brand names Tribute in Goa, JW Marriott in Karnataka’s Sakleshpur plantation, and three hotels in Bengaluru.
Motilal Oswal's View
Despite lowering their FY24 revenue/Ebitda/PAT estimates by 17%/14%/15% due to muted project completions, moderate revenue recognition in 3Q, Motilal Oswal believes that Prestige Estates Projects is on track to exceed its full year guidance.
The brokerage maintains a "buy" rating on the stock with a target price of Rs 1,465 as of Feb. 14. Motilal Oswal has also incorporated better-than-expected performance on bookings and marginally raised their FY24 and FY25 estimates by 5% and 4%, respectively.
With the company enhancing its growth visibility in its residential segment by expanding its project pipeline and making advances on its key commercial projects, a further re-rating is imminent, the brokerage said.
Street View
Of the 19 analysts tracking the company, 15 maintain a 'buy' rating, one recommends a 'hold' and three suggest a 'sell', according to Bloomberg data.